A GRI G4

Compliant Report

(A Government of India Undertaking)(A Government of India Undertaking)

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Contents

About the Report 2

From CMD’s desk 3

About RCF 5

Awards & Accolades 8

Corporate Governance & Risk Management 12

Stakeholder Engagement & Materiality Assessment 19

Business Growth & Profitability 25

Energy Management 27

Emission Management 30

Water Management 32

Waste Management 34

Material Management 37

Biodiversity Management 38

Environmental Investment 39

Product Responsibility 40

Employee Management & Labour relations 41

Community Welfare 52

Our Supply Chain 58

Relationship with Customers 59

GRI Content Index 62

National Voluntary Guideline (NVG) Disclosure 68

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This year we have adopted the Global Reporting initiative (GRI) G4 standard for the Sustainability Report. Our previous reports, were compliant with GRI 3.1. The purpose of Sustainability Report for the year 2015-16 is to convey an update on efforts and performance of RCF in the field of Sustainability and Corporate Social Responsibility (CSR) during the year. The report has been prepared using GRI- G4 for Sustainability Reporting. The GRI content index is provided at the end the report, which gives a detailed reference on the GRI performance indicators and standard disclosures. This report also addresses the nine principles of National Voluntary Guidelines on Social, Environmental and Economic responsibilities of Business, published by the Ministry of Corporate Affairs, Government of India. Contents of the report are as per ‘In-accordance’- Comprehensive as per GRI-G4. No restatements of information from previous year’s report are present.

Scope and Boundary of the Report

RCF has two manufacturing sites, i.e Trombay unit at Mumbai and Thal unit at Raigad district, Maharashtra, India and the report covers both operational Units of RCF. Our residential colonies, marketing offices and corporate office have been excluded from this year’s reporting boundary. Also this report does not include the sustainability performance of our joint ventures and subsidiaries. Information on earnings and financial data including Consolidated Financial Statements of the Company is available in our Annual Financial Report. There have been no significant changes made during the reporting period regarding size, structure, or ownership. Also, no significant changes have been made from previous reports in terms of scope and/or boundaries

Reporting Period

This report provides an update on our Sustainability performance for the year 2015-16. However, to enable trend analysis,along with the data for the year 2015-16, we have also reported data for last two years 2013-14 and 2014-15. The data and information is presented for FY 2015-16, updated as on 31st March 2016.We publish our sustainability report on an annual basis.

Measurement Approach for Data

While reporting on performance indicators, we have made an attempt to apply uniform approach for data collection, measurements and calculations for both of our manufacturing units. Any assumptions and methodology used for analysis or reporting are included in the report wherever relevant.

Assurance

This year, our sustainability report is assured by Emergent Ventures India Pvt. Ltd. (EVI). This is a Type 2 Moderate level assured report based on AA1000AS (2008) standard. The assurance process includes data verification at different sites of RCF that will continue to help RCF improve its processes and data management mechanisms. There is no relationship between RCF or its employees and the assurance provider (EVI).

Feedback

We solicit your feedback to improve upon the reporting process in coming years. Any query with respect to this report may be addressed to:

Shri S. ParthasarathyExecutive Director (Finance) &

Chief Sustainability Officer (CSO)

Phone Number: (022) 25523106/3133

E-Mail Id: sustainabilityfeedback@rcfltd.com

About the Report

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It gives me immense pleasure to present RCF’s Sustainability Report for the year 2015-16, our fourth sustainability Report, and the first Global Reporting initiative (GRI) G4 compliant report. Sustainability is at the heart of RCF, and we have continuously endeavoured to incorporate sustainability in every aspect of our functioning. Right from our energy management initiatives to responsible treatment of wastage and Corporate Social Responsibility, our sustainability initiatives span multiple facets. Our vision and mission clearly state that we wish to be a world class company in an ethical and socially responsible manner, thus ensuring sustainability is interwoven in our every step ahead. Our Sustainability Policy continues to uphold our values and guide us in the direction of greater sustainability.

We have taken multiple steps this year to improve our environmental aspects. We are working on several energy saving schemes.Utilization of renewable resources to fulfil our energy requirements is our step in that endeavour. The 2MW Photovoltaic ground mountedsolar power plant at Trombay has been commissioned in January 2016. We have also set uprooftop solar power plants with an aggregate capacity of 84 KW. Further, around

1.3 MW rooftop solar plants are in the offing. We are setting up a new Sewage Treatment Plant (STP) at our Trombay unit. With the addition of this Plant, RCF Trombay unit shall not only be self-sufficient with its own requirements but also shall be supplying water to the neighbouring industry. Our initiatives have also resulted in significant emission reduction across locations.

As a socially responsible company, we continued our activities towards sustenance of the environment,education and welfare of the community, propagation of sports and cultural activities, directly and indirectly, helping the community in bettering the life and environment around. To enable holistic development of communities we operate in, we have adopted several villages and continue to invest in various facets of development there. We continue to invest in our next generation through school programs at Thal, the Mid-Day meal scheme in schools attended by lower strata of society.Our flagship program ‘RCF Super 30’, provides free residential coaching to the promising students from the deprived class that enables them to get admissions into IIT/NIT and other premier colleges.

This year has been challenging for RCF from the financial front. Although our top-line has improved, with revenues generated this year being `8761.6 Crore as compared to `7787.8 Crore the previous year, there has been a drop in our profits. There have been several challenges in our way of economic sustainability including uncertainty in availability of domestic gas for P&K fertilisers and industrial chemicals, recovery against use of APM gas in production of non-urea products, N-recovery for use of domestic gas in P&K fertiliser production, non-receipt of fertiliser subsidy in time etc. Our margins are also under pressure due to reduction in energy norms stipulated in the New Urea policy. The viability and profitability of the chemicals sector have been adversely affected due to the uncertainty in availability of domestic

From CMD’s desk

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gas as well as cheap imports. Being an integrated fertiliser cum chemical complex, RCF’s Trombay unit requires continued allocation of domestic gas for its non-urea activities to remain on board in this competitive environment. We have taken up the matter with the Government at different forums and are hopeful of a positive outcome.

We are focusing on expansion and new projects. We have been working on development of Thal-III expansion project, Talcher revival project and a JV Urea project in Iran. We are also aiming to reduce specific energy consumption of Urea plants at Trombay and Thal through various revamp schemes. For the Talcher project, a JV by the name of Talcher Fertilizer Ltd.(TFL) has been incorporated and other pre-project activities are

expected to be completed in the coming months. In the Iran project, selection of Iranian JV partner and other pre-project activities shall be expedited in the next fiscal year.

We at RCF continue to have a positive outlook despite many obstacles of varying nature that we face on our path towards excellence. I conclude with the reiteration that the Company stands firmly committed to continuously endeavour to improve in all its social, environmental and economic aspects so as to achieve higher levels of Sustainability.

Mr. Manoj MishraChairman & Managing Director

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To be a world class corporate in the field of fertilizers and chemicals with dominant position in Indian market, ensuring optimal utilisation of resources, taking due care of environment and maximising value of stakeholders.

Exponential growth through business excellence with focus on maximising stakeholder value by manufacturing and selling fertilizers and chemicals in a reliable, ethical and socially responsible manner

RCF shall deal in all aspects of business with integrity, honesty, transparency and with utmost respect to the stakeholders, by honouring our commitments, providing results and striving for the highest quality

• To produce and market fertilizers and industrial chemicals efficiently, economically and in an environmental friendly manner.

• To maintain optimum levels of efficiency in the use of resources for maximizing return on investment.

• To take up and implement modernization and energy saving schemes.

• To continuously upgrade the quality of human resources and promote organizational and management development.

• To care for and protect the environment by minimizing the emissions including greenhouse gases and also improving on the standards laid down by Pollution Control Authorities and taking action to meet the requirements of ISO 14000 Standards.

• To increase customer satisfaction by providing quality products and services.

• To ensure corporate growth by expansion as well as diversification.

• To impart training and education to farmers

OUR VISION

OUR MISSION

VALUE STATEMENT

OUR OBJECTIVES

About RCF

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Rashtriya Chemicals and Fertilizers Ltd., (RCF) was incorporated on 6th March, 1978 on reorganization of erstwhile Fertilizer Corporation of India Ltd. RCF is a leading fertilizer and chemical manufacturing company having headquarter in Mumbai, India. RCF has two operating units, one at Trombay in Mumbai and the other at Thal, Raigad district, about 100 KM from Mumbai. RCF manufactures Urea, Complex fertilizers (NPK), Bio-fertilizers, Micronutrients fertilizers, 100% water soluble fertilizers and a wide range of Industrial Chemicals. The Ujjwala (Urea) and Suphala (Complex fertilizers - NPK 15:15:15 & 20:20:0) brands of fertilizers manufactured by RCF carry high brand equity and are recognized brands all over the country. RCF has countrywide marketing network in all major states. RCF also produces various industrial chemicals that are important for the manufacture of dyes, solvents, leather, pharmaceuticals and a multitude of other industries. Govt. of India has accorded “Mini Ratna” status to RCF and we are now poised to get “Navratna” status.Presently the authorized share capital of RCF is `800 Crore and paid up capital is `551.69 Crore.

Continuous emission monitoring is done through four dedicated continuous Ambient Air Monitoring Systems located around the boundary of the factory, at Trombay and Thal unit each. Real time emission levels are exhibited through an illuminated board placed at the entrance of the factory for public viewing. The company is maintaining ISO 14001:2004 (Environment Management System) certification for environment since last fifteen years. Both the manufacturing units are certified under ISO 9001:2008 (Quality Management System) for quality and under OHSAS 18001:2007 (Occupational Health and Safety Management System) for Occupational Health and Safety. Also ISO 50001:2011 (Energy Management System) has been successfully implemented at RCF Trombay Unit. RCF is also in process of implementing ISO 27001 (Information Security Management). For Human Resource systems, RCF is the only PSU having received level 2 certification for People Capability Maturity Module (PCMM).

At RCF, Safety of people, process, plants and surrounding is of paramount importance. Various safety measures have been implemented at RCF. Some of the pillars of safety culture at RCF are as follows:

• Process Safety Management

• Timely upgrading of safety facilities

• Imparting training on Safety

• Use of Personnel Protective Equipments (PPEs)

• CCTV Cameras are provided for monitoring Critical operations

• Provision of Flammable & Toxic Gas Detection system Mock drills

• MOU with Mutual Aid Response Group (MARG)

• Active & Passive Fire Protection System

• Auditing and inspections

• Online Near-miss reporting

• HSE index for competitiveness among the plants

• Walkthroughs showing management commitments towards the cause of safety

Safety information bulletin is published and widely circulatedduring the Safety Week every year. Safety statistics, current safety issues, environment and health related topics are covered in the bulletin with inspiring messages from top management. RCF’s Research & Development Division has developed Bio-fertilizer named “Biola”, liquid micronutrient fertilizer named “Microla” and 100% water soluble (w.s.) fertilizer “Sujala” (19:19:19) with drip and foliar variants.

Recycle and reuse of resources has been the basic philosophy of RCF. The company has set up Sewage Treatment Plant (STP) at Trombay Unit, which is one-of-its-kind in the country. The STP is based on conventional Activated Sludge Process followed by Reverse Osmosis (RO). The plant treats around 22.75 Million Litres per Day (MLD) of sewage received from MCGM which otherwise would have been drained into the sea after minimal treatment. The plant generates about 15 MLD of treated water which is being used in our plants as process water. RCF is setting-up one more Sewage Treatment Plant of equal capacity at Trombay Unit.

RCF runs 19 Soil Testing Laboratories (13 static and 6 mobile) in the state of Maharashtra, Telangana, Andhra Pradesh, Karnataka, Chhattisgarh and Uttar Pradeshat where thousands of soil samples are analysed and soil health cards are distributed to the farmers free of cost.

RCF also runs two state of art training institutes; one at Nagpur and other one at Alibagh, Dist. Raigad, where experts from RCF and external faculties from Agriculture universities impart training to farmers, free of cost.

RCF, as a part of its farm extension services offers ‘Kisan Care Service’, a toll free helpline (1800-223044) tofarmers.RCF prints and distributes monthly magazine called “RCF Sheti Patrika” free of cost to about 60,000 farmers of Maharashtra, Goa, Karnataka and Telangana, since 1967.

RCF strongly believes in discharging its Corporate Social Responsibility (CSR) in rural areas and has focused its CSR activities towards empowering the under privileged. A host of CSR activities are undertaken by the company which includes adoption of villages, providing drinking

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Name of the company % of ownership held by RCF

FACT-RCF Building Products Ltd. 50

Urvarak Videsh Ltd. 33.33

Talcher Fertilizers Limited 30

Name of the holder No. of shares Percentage of shareholder

Govt. of India 44,13,53,888 80

Mutual Funds / UTI 1,72,812 0.03

Financial Institutions / Banks 27,86,448 0.51

Insurance Companies 3,51,52,735 6.37

Foreign Institutional Investors (FII) and Foreign Portfolio Investors 39,39,045 0.71

Corporate Bodies 87,43,676 1.59

Indian Public 5,27,51,015 9.56

Non Resident Indians / OCBs/Foreign Nationals 16,80,422 0.30

Clearing Members, Trusts and HUF 51,08,059 0.93

Total 55,16,88,100 100

water, providing schooling facilities and scholarships to the under privileged, special measures for SC/ ST, providing training to farmers, mobile medical Van scheme, mid-day meal scheme, setting up of skill development centres, Building roads, pathways and bridges, etc.

RCF is poised for growth through implementation of expansion projects which will help to reduce the demand-supply gap of fertilizer in the country and will contribute in fulfilling the “Make In India” agenda of the Country. Company is engaged in developing project for 1.27 million MT Urea plant at Thal under its Thal – III expansion plan and another 1.27 million MT Urea plant based on coal gasification at Talcher in Odisha. RCF is also exploring growth opportunities through overseas joint venture projects.

RCF prepares a five-year corporate plan, which is updated every years. The Corporate Plan consist of Business Environment Analysis which includes

deliberation on demand, supply and consumption of fertilizers in the past and estimated future trend, outlook of industry, policy environment, etc. RCF’s Corporate Plan also includes five year road map and strategy pertaining to Production, Financial, Human Resource (HR), Health, Safety & Environment (HSE), Research & Development (R&D), Corporate Social Responsibility (CSR), Corporate Governance, Industrial Engineering (IE), Information Technology (IT) etc.

Nature of Ownership & Legal Form

RCF was a wholly owned Public Sector Unit (PSU) till 1992. In 1992-93, Government of India divested and gave 7.5 % share of equity to other stakeholders such as financial institutions and Indian public. Further 12.5% share was divested in March 2013. Government of India is still a majority shareholder in RCF with 80% of the total equity. The shareholding pattern for RCF is given in the table below:

The information for joint controlled entities is given in the table below:

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First prize of 10th state level Energy Conservation Awards for the year 2014-15 by MEDA.

Best Productionperformance of an operating fertilizer unit for nitrogen (Ammonia and Urea) for the year 2014-15 from FAI.

National EnergyConservation Award-2015. 2nd Prize in the Fertilizer sector from Ministry of Power.

Awards & Accolades

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“Best Safety Practices-2015” Runner’s up award from National Safety Council Maharashtra Chapter.

RCF Trombay Unit hasreceived “Certificate of Merit in the Fertilizer Sector” from Bureau of Energy Efficiency in “National Energy ConservationAward 2015”. Energy Manager of RCF Trombay Unit Shri. D V Bhagat receivingNECA certificate of merit award 2014-15.

Certificate of Merit for excellence in Energy Conservation and Management for the year 2014 from ICC.

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16th Annual GreentechEnvironment Award for the year 2015 in Platinum category, instituted by GreentechFoundation foroutstanding performance in environment management in Fertilizer Sector.

Award for best productionperformance of an Operating Fertilizer Unit for Complex Fertilizer’ for the year 2014-15 from FertilizerAssociation of India (FAI).

State level award for excellence inEnergy Conservation and Management organized by Maharashtra EnergyDevelopment Agency in 2015.ChiefGeneral Manager (Technical) Shri N R Kamat and Assistant GeneralManager (Technical Services) Shri S D Awalkar receiving the“Excellence in Energy Conservationand Management award 2015”organized by Maharashtra EnergyDevelopment Agency (MEDA).

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Other Awards

• National Vigilance Excellence Award 2015

• D&B India top ten PSU Award 2015

• Golden Peacock Award for Excellent corporate governance to RCF Trombay

• H N Thadani Award to RCF, Trombay by IIIE for 2014-15

• Best Enterprise Award by forum of Women in Public Sector (WIPS)

• Indian Pride Award by Dainik Bhaskar for 2015-16

• Vigilance Excellence Award to RCF from institute Public Enterprise Hyderabad for 2015-16

• FICCI Award for Product Innovator of the year 2015

• 13th National Award for Excellence in Cost Management, 2015

• Best Case Study at Vigilance Study Circle Mumbai for 2015-16

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We believe in ensuring the best practices with regard to the board, stakeholder engagement and disclosures in order to create an ethical and responsible business system. Based on the core principles of fairness, transparency and accountability, the Company strives to maintain a high standard of corporate governance through the establishment of a comprehensive and efficient framework of policies, procedures and systems and the promotion of a responsible corporate culture.

Our Corporate Governance framework is developed in compliance with the Companies Act, the regulations and guidelines of the Securities and Exchange Board (SEBI) and the requirements of the listing agreements under the Indian stock exchange. Board meetings are conducted regularly to discuss issues obligated by the corporate governance code and report on Corporate Governance is submitted to the Board on quarterly basis. This year, RCF held 13 board meetings discussing corporate governance issues.

Some of our policies and guidelines include:

a. The Code for Prevention of Insider Trading in the Securities of RCF

b. Whistle Blower policy

c. Policy on Gender Equality

d. Policy on Zero tolerance to sexual harassment at the workplace

e. Health, Safety and Environment Policy

f. Corporate Social Responsibility Policy

g. E-waste Policy

h. Information Technology Policy

i. Research & Development Policy

j. Protect and Sustain Policy

k. Policies for determining Material Subsidiaries

l. Policy for Determination of Material/Price Sensitive Information and Disclosure Obligations

Board Constitution

The Board of Directors are vested with decision making and regulatory powers. RCF being a Public Sector Undertaking, the Directors are appointed/nominated by President of India. Qualification and expertise of members of highest governance body are assessed by the Dept. of Fertilizers (DoF), Ministry of Chemicals and Fertilizers, GoI. The tenure of the Board of Directors is given bellow:

Directors Tenure

Functional Director

For a period of five years from the date of the assumption of charge or till the date of superannuation, or until further orders by DoF, whichever is the earliest.

Independent Director

For a period of three years w.e.f. the date of notification of the appointment/ from the date of the assumption of charge, or until further orders by DoF, whichever is earlier.

Govt. Nominee Director

With immediate effect till further orders by DoF.

Corporate Governance & Risk Management

The Board of Directors comprise of 7 members, led by the Chairman and Managing Director (CMD). Of the 7 Directors, the CMD and 3 other Directors hold functional and full time positions to oversee Technical, Marketing and Financial operations of the company. Apart from the non-executive directors, two other members are government nominees while one is an independent director. Three more independent directors were appointed on the Board of RCF on 8thJuly, 2016. Our Board members are qualified and experienced professionals with expertise in their respective areas of operation and leadership.

RCF has not been able to comply with the requirement of 50% Independent Directors including one-woman Director on its Board as it being a Government Company under the administrative control of the Ministry of Chemicals and Fertilizers having the Directors are appointed by the Government. RCF has been continuously following up with the Government for appointment of two Independent Directors including one-woman Director and it is given to understand that the Government is likely to appoint soon. Performance of members of highest governance body are assessed by the Dept. of Fertilizers (DoF), Ministry of Chemicals and Fertilizers, GoI.

Responsibilities of the Board, over and above, overseeing operations of the company are providing comprehensive leadership and strategic insights. RCF maintains prescribed agenda notes reserved for the Board’s decision to ensure a clear delineation of Board and executive management decisions.

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Composition of the Board

Audit Committee

The company’s financial reporting and policies, compliance of the company are reviewed by the Audit Committee. The committee comprises of Prof. Damodar Acharya, as Chairman and Mr. C.M.T. Britto and Mr. Ashok Ghasghase as Members. The committee reviewed audits conducted by Internal Audit Department, provided a way forward and committed to investigations wherever necessary in the year 2015-16.

The Audit Committee met 4 (four) times on 20.05.2015, 10.08.2015, 12.11.2015 and 08.02.2016.During the year 2015-16, the Committee reviewed the audits conducted by Internal Audit Department, gave directions and sought further investigations and examinations, wherever necessary. The Committee also reviewed the financial statements before submitting to the Board and emphasized the importance of internal Control Systems. All the recommendations of the Audit Committee were accepted and implemented.

The Internal Audit committee is also responsible to develop the systems for audit, risk assessment and mitigation. The committee meets on a quarterly basis to review and discuss the types of risks the company faces.

Risk assessment and mitigation protocol

Risk forms an inherent parcel of any business. Identifying the types of risks encountered and developing mechanisms to cope with risk is what ensures the smooth functioning of the organization. The company has a dynamic risk identification and assessment process. RCF has framed a Risk Management Policy which identifies better management practices to ensure greater degree of confidence amongst various stakeholders and facilitates good Corporate Governance practices. This policy lays guidelines for assessing, controlling and reporting the risk. It also guides the management to constitute a

Composition of Governance Body*

2015-16

No. of Employees

% of Total no. of executive members of Governance

Body

GenderMale 4 100%

Female 0 0%

Age-group

<30 years 0 0%

30-50 years 0 0%

>50 years 4 100%

Minority Group

Yes 1 25%

No 3 75%

In order to take informed, transparent decisions and safeguard the interests of the stakeholders, our Board has constituted various committees, comprising of Non-Executive Directors provided with functions of the committee. The committees of the Board are required to report to the Board on their decisions or recommendations.

Chairman and Managing Director(Executive)

Shri R.G Rajan upto 14th June 2016.Shri Manoj Mishra w.e.f.15th June 2016.

Director (Technical) (Executive) Shri C.MT. Britto

Director (Marketing) (Executive)

Shri Ashok Ghasghase (Superannuated w.e.f.1st July 2016)

Director (Finance) (Executive) Shri Suresh Warior

Director (Non-Executive)

Shri Sham Lal Goyal, IAS upto 27th January 2016Shri Dharam Pal, IAS w.e.f. 28th January 2016.

Director (Non-Executive) Shri Sushil Kumar Lohani, IAS

Independent Director Prof. Damodar Acharya

Independent Director

Shri Harin Pathak (appointed w.e.f. 8th July 2016)

Independent Director

Shri Bharatkumar Barot (appointed w.e.f. 8th July 2016)

Independent Director

Shri G. M. Inamdar(appointed w.e.f. 8th July 2016)

* Includes functional/executive members only.

Board

CSR Committee

Empowered committee for procurement

Share Transfer

committee

Nominations &

Remuneration committee

Stakeholder Relation

committeeAudit

committee

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Risk Monitoring Cell consisting of a three tier system. It comprises of a Chief Risk Officer (CRO), Risk Managers and Risk Officers. The Chief of Internal Audit is the CRO while the senior managers nominated by the Functional Heads act as the Risk Managers. They are further supported by Risk Officers identified in different sections of each Function.Our risk management policy puts in place the framework for:

• Identification and grouping of potential risks.

• Classification and grading of risks on the basis of their impact.

• Indicators or triggers for risks.

• Framing strategies for mitigating identified risks.

• Procedure for monitoring and systematic reporting

• Periodic review of the risk matrix.

• Communication of the risk management policy across the company.

• Communication to the Stakeholders/Authorities.

We have classified the risks under four categories- Social, Environmental, Economic and Operational risks.

In order to mitigate some of the above mentioned risks, we have set up the following processes:

a. We have set up a tendering system to ensure the fluctuations in demand do not affect, to a great extent, the pricing of the raw materials, fertilizers. The process of tendering ensures equal opportunity for all those who apply, thereby eliminating favouritism. The tender process ensures high quality of work at lower prices.

b. We have a Risk Management Committee which assesses risks to business operations on a quarterly basis, to ensure that our business and customers do not suffer.

The task of risk management is overseen by the Board of Directors which provides important insight to enterprise risk management. A summarized Risk Report is placed before the Board, on quarterly basis, for review and advice. Further details on risk management is given in Annual Report available at, http://www.rcfltd.com/index.php/en/investor-relations/annual-reports .

Stakeholders Relations Committee

This committee is set up to monitor and ensure the issues of the stakeholders, specifically the investors

are addressed quickly. The committee comprises of Prof. Damodar Acharya and Mr. Ashok Ghasghase as members of the committee.

Corporate Social Responsibility Committee

The committee has been made to formulate and recommend to the Board, a CSR policy, indicating the activities that can be undertaken by the Board, recommend the expenditure on these activities and monitor the CSR policy on a regular basis. The CSR Committee comprises of Prof. Damodar Acharya, Independent Director as Chairman, Shri Dharam Pal, Govt. Nominee Director and Shri C.M.T. Britto, Director [Technical] as members. The committee met on 21st May 2015 and 10th October 2015.

Nomination and Remuneration Committee

The committee is formulated to decide the Annual Bonus/Variable Pay Pool/Performance Related Pay and Policy for its distribution across the employees in terms of the guidelines of the Department of Public Enterprises, Government of India. The committee comprises of Prof. Damodar Acharya as a chairman, Shri Dharam Pal and Shri Sushil Kumar Lohani as members. The committee met on 26th October 2015. Further details on remuneration is given in Annual Report available at,

Economic Risk Environmental Risk Social Risk Operational Risk

Volatile pricing of Natural Gas

Pricing of other raw materials like MoP, DAP, MAP, Sulphur and others

Fluctuations in demand for fertilizers

International pressure to regulate the use of chemical fertilizers

Changes in Govt. policies/legal frame work / statutory levies/regulations

Changes in the agro-climatic conditions

Changes in the agro-climatic conditions

International pressure to regulate the use of chemical fertilizers

Contractors/Parties unable to meet project schedule

Production risks

Availability of Natural gas

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http://www.rcfl td.com/index.php/en/investor-relations/annual-reports.

Share Transfer Committee

The committee is entrusted with the responsibility to effect transfer of shares and issues of duplicate share certificates, de-materialization, and re-materialization, etc. The Share Transfer Committee comprises of Shri R. G. Rajan, Chairman, Shri C. M. T. Britto and Shri Suresh Warior as Members and Company Secretary as Secretary. This committee regularly met to effect transfer of shares, and there are no pending cases for transfer.

Empowered Committee for Procurement

The Board has constituted Empowered Committee comprising of Shri R. G. Rajan, Chairman and Managing Director as Chairman, Shri C.M.T. Britto, Director(Technical), Shri Ashokkumar Ghasghase, Director(Marketing) and Shri Suresh Warior, Director(Finance) as members to approve procurement of the raw materials, fertilizers and imported fertilizers for a value upto `100 Crore each cases.

The details of the committee is mentioned in the table below:

The various committees of the Board delegate authority to respective senior executives to ensure implementation of the Board resolution and policies for economic, environmental and social topics

The products manufactured adhere stringently to the ‘Quality, Environment, Health and Safety (QEHS) Policy’. Under this policy we pledge to comply with the legal and other requirements but shall strive to achieve excellence in Quality, Environment, Occupational Health and Process Safety Management.

The methodology is implemented and reinforced through the ‘Integrated Management System Policy’ at our units. We are committed to ensuring efficient and effective performance in all our activities related to production and dispatch of fertilizers and industrial products. While such performance will help us attain high quality products, and customer satisfaction, we also have the highest concern for maintenance, preservation and improvement of environment.

Code of Conduct

Transparency is an eminent part of RCF’s functioning. The company has in place, the following systems to enhance transparency:

At RCF, governance does not end with reporting norms and legal requirements but takes one step ahead considering aspects related to corporate citizenship, health, safety, climate change and others. The operations of the company are carried out in ways that benefit the society without causing detrimental damage to the local environment.

Corporate Social Responsibility (CSR) is a committee under the Board of Directors. The CSR Committee provides inputs on the strategic investments in the social sector. The committee is integral to ensure sustainable Development. Working in harmony with the society provides RCF an opportunity to understand customer needs and bridge the gap between demand and supply. The CSR committee approves and oversees the execution of projects. It also recommends the financial contribution to be provided for each project. In other words, the committee is responsible for the overall sustainability performance of the company.

Sustainable Development calls for amalgamation of resources to ensure environmental, economic and social viability. RCF strives to maintain a balance with the three aspects. We focus upon manufacturing fertilizers and chemicals at optimum value by way of retrofitting plants for energy reduction.

Name of the Committee Chairperson Number of Meetings

Audit Committee Prof. Damodar Acharya Four

Stakeholders Relations Committee Nil

Corporate Social Responsibility Committee Prof. Damodar Acharya Two

Nomination and Remuneration Committee Prof. Damodar Acharya One

Share Transfer Committee Shri R. G. Rajan Five

Empowered Committee for Procurement Shri R. G. Rajan Note: Committee constituted after 31st March 2016.

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• Delegation of Powers

• Tender Guidelines

• Internal Audit System

• Code of Discipline and Appeal (CDA) Rules for employees

• The Code for Prevention of Insider Trading in the securities of Rashtriya Chemicals and Fertilizers Limited

• Code of Conduct for Directors and Senior Management Personnel

To ensure transparency is maintained, we have a vigilance department, headed by the Chief Vigilance Officer (CVO), deputed from the All India Services by the Government of India. CVO reports directly to the Chairman and Managing Director and he is assisted by a team of officers drawn from various functional

This year, there have been three confirmed incidences of corruption at RCF. Action was taken according to the CDA rules for employees, and resulted in dismissal of 1 employee.

External Charter and International Standards

The company has ISO 14001 compliant Environment Management System. Both the manufacturing units are certified with Quality Management System (ISO 9001:2008) and Occupational Health and Safety Assessment Series (OHSAS 18001:2007).Also ISO 50001:2011 (Energy Management System) has been successfully implemented at RCF Trombay Unit. The three separate systems are all brought under Integrated Management System (IMS). Internal audits, Surveillance (external) Audit and Management Reviews are carried

Session Date Topic Presenter

29th October 2015 Preventive Vigilance is tool of Good Governance Shri Narayan Varma, RTI Specialist

Vigilance Awareness Week was celebrated at RCF from 26th to 31st October 2015. On this occasion Slogan, Poetry and Essay writing completion was organized. The theme for the Completion was ‘Preventive Vigilance

Name of Programme Begin Date End Date Duration Location

Seminar on Vigilance Administration 28-05-15 29-05-15 2 days Centre for Integrity Governance and Training

in Vigilance Administration

Vigilance & Ethics in Public Procurement 20-08-15 21-08-15 2 days Indian Railways Institute of Logistics &

Materials Management

Workshop on Vigilance Role, Functions 05-07-15 07-07-15 3 days Industrial Management Academy-Jaipur

departments.The Vigilance Department receives complaints through any of the available media like written application sent to headquarter, by filing online complaints (e-mail and other forms) or by reporting any fraud to the nodal officers in any of the departments. At the same time we have also put significant emphasis on fraud prevention and maintenance of transparency. All our business units have been analysed for risks related to corruption. No legal actions for anti-competitive behaviour, anti-trust, and monopoly practices have been taken against RCF. Also, no significant fines or sanctions for no-compliance with laws and regulations was imposed on RCF.

At RCF, various programs are organized through the year on topics such as Ethics, Good governance and Moral Values. Through the year, we have conducted various sessions as mentioned below:

is tool of Good Governance’.

External training was also provided to some of the employees of the Company. Details of external training is as given below:

out regularly to ensure compliance and continually improve and to upgrade the system.Central Chemical Laboratory and R&D - Agri Laboratory of RCF Trombay Unit have been accredited in accordance with ISO/IEC 17025:2005 in the field of chemical testing by National Accreditation Board for Testing and Calibration Laboratories (NABL) on 29th January 2016. RCF is also in process of implementing ISO 27001 (Information Security Management).

Conflict Resolution

For conflict resolution, the Code of conduct for Directors and senior managerial personnel is in place at RCF. RCF is also in process of preparing policy for related party transactions. The company complies with guideline w.r.t. Companies Act 2013 and SEBI’s regulation 2015

17

(listing obligations and disclosure requirements).

Grievance Redressal

At RCF, we endeavour to maintain a transparent relationship with all our stakeholders and provide the best in class products and services. However, ifdue to any unprecedented reasons,stakeholders find that there is / arereason(s) to improve, then they areencouraged

There were six grievances pertaining to Labour practices were received and resolved.

Board Training

In a bid to keep upto date with the latest topics on

to report the same to us through an online grievance mechanism. Online grievance can be registered by the stakeholder through www.pgportal.gov.in. Appropriate action is taken with regards to the grievance and reply is sent to the applicant. Action taken report is uploaded on portal and grievance is closed. The information on various types of grievances we received, addressed, pending and resolved are given in the table below:

Environment Labor Practices Human rights Society Total

Complaints received 0 6 0 0 6

Complaints resolved 0 6 0 0 6

Complaints under review 0 6 0 0 6

Cumulative complaints pending 0 0 0 0 0

the fertiliser sector, and upgrade skills so as to ensure continuous improvement, our board members undertake several trainings throughout the year. The details of training are given in the table below:

SN Name of the Director Name of the Programmes

1) Prof. Damodar Acharya FAI Annual Seminar 2015 (Unlocking potential of fertilize sector) held on 2nd to 4th December, 2015 at New Delhi.

2) Prof. Damodar Acharya Familiarisation about the Company through presentation in 374th Meeting of the Board held on 8th July, 2016 at Mumbai.

3) Shri Harina Pathak Familiarisation about the Company through presentation in 374th Meeting of the Board held on 8th July, 2016 at Mumbai.

4) Shri Bharatkumar Barot Familiarisation about the Company through presentation in 374th Meeting of the Board held on 8th July, 2016 at Mumbai.

5) Shri G. M. Inamdar Familiarisation about the Company through presentation in 374th Meeting of the Board held on 8th July, 2016 at Mumbai.

18

Designation Name of Programme Begin Date End Date Days Location

CMD Dream Team - Capacity Building - TOP MGT 17-10-15 17-10-15 1 CMDC, Mumbai

CMD FAI Annual Seminar 2015 02-12-15 04-12-15 3 Fertiliser Association Of India, Delhi

CMDInternational Fertilizer Industry Association, Annual Conference,

24-05-15 27-05-15 Istanbul, Turkey

Director (Finance) Dubai Global Convention 20-04-15 22-04-15 3 Institute Of Directors, Dubai

Director (Finance) Dream Team - Capacity Building - top mgt 16-10-15 16-10-15 1 CMDC, Mumbai

Director (Finance) FAI annual seminar 2015 02-12-15 04-12-15 3 Fertiliser Association Of India, Delhi

Director(Mktg) Rural & Agricultural Summit 21-08-15 21-08-15 1 Institute Of Supply

Chain Management

Director(Mktg) Dream Team - Capacity Building - Top Mgt 17-10-15 17-10-15 1 CMDC, Mumbai

Director(Mktg) FAI annual seminar 2015 02-12-15 04-12-15 3 Fertiliser Association Of India, Delhi

Director(Mktg) Retirement Planning 04-02-16 04-02-16 1 CMDC, Mumbai

Director(Technical) FAI annual seminar 2015 02-12-15 04-12-15 3 Fertiliser Association Of India, Delhi

19

RCF is India’s leading fertilizer and chemical company. The challenge of sustainable development requires business to shift from viewing it as a matter of compliance to one of value generation. To ensure this, we seek to involve our stakeholders at various levels in the sustainability reporting process such as identification of material issues amongst the economic, social and environmental indicators which they believe are critical for the company. Stakeholder engagement is a fundamental apparatus to make our business participatory and get criticism from the society with whom we share a mutual relationship. We intend to have a proactive stakeholder engagement strategy which can lead to a number of partnerships and benefit local communities. In this regard, we have classified our stakeholders into internal and external. The internal stakeholders comprise of the employees including the employees on role and the retired employees.The external stakeholders include the shareholders/

In addition to the stakeholder engagement exercise carried out for materiality assessment, we also have regular programs conducted for the various stakeholder groups which are listed in the table below:

Investors, Community/ Beneficiaries, Creditors/ Banks, Customers, Suppliers, Dealers/ Distributors, contractors and NGOs. These stakeholders were identified based on the some internal criteria, discussion with Top management and discuss with critical stakeholders. However in future we will incorporate more formal process stakeholder identification. This year we have reached out to the various stakeholders via surveys. The surveys, specific to the stakeholder were doled out through different modes- Emailers and mass mailers, IVR, hardcopy surveys. Through the various technology means we reached out to nearly 6200 prioritized stakeholders. The stakeholder engagement process was conducted to identify issues material to the stakeholders and thereby prioritize based on management consultation, the issues key to the growth of the company.The stakeholder engagement process yielded us with different issues material to different stakeholders.

Stakeholder Engagement & Materiality Assessment

Shareholders/ Investors / Government

Dealers and End Users of IPD (Industrial Product Division)

Fertilizer DealersPermanent Employees

Customers (Farmers)

Community Contract Labour

Suppliers

20

Stakeholder Engagement

TypeForum Frequency and Agenda

Shareholders / Investors / Government

Communication / Consultation / Dialogue

Secretary level review

Quarterly Review Meeting (QRM) is conducted to discuss the overall performance of the company. QRM is chaired by Secretary (Fertilizers), Dept. of Fertilizers (DoF) along with CMD and all Directors to discuss performance of the company.

Annual General Body Meetings (AGM)

For the year 2015-16, AGM is planned in the month of September 2016. During the AGM, stakeholders concerns like Non-receipt of Dividend Warrants are discussed. Corrective Action: RCF reviewed list of unpaid dividend account for the past 7 years and dispatched letters to shareholders for claiming dividend.

MoU Review Meetings

The status and actual achievements up to the quarter for MoU targets is discussed as part of MoU review during QRM via presentation and discussions.

Permanent Employees

Communication/ Dialogue

Grievance Mechanism

The grievances are addressed by special officer of the Company not below the rank of Dy. General Manager who acts as the Nodal Officer for redressal. It is assured that the Nodal Officer will immediately take up the issue with the concerned department and appropriate action is taken within seven days from the date of receipt of the complaint or an appropriate reply is sent as the case may warrant. Separate female senior manager is designated to receive and address grievances from female employees. Based on Communication/ Dialogue with the employees, grievance like Non-availability and poor state of residential quarters have emerged. Corrective Actions: Extensive repair and demolition of old township buildings and construction of multi -storied apartments.

Performance Reviews

Performance reviews of all employees are conducted annually through Performance Appraisal System (PAS) and Confidential Report (CR).

Trainings Training for employees is conducted in-house as well as with the help of external faculty. The training programs are conducted throughout the year and are need-based.

Open-House Sessions

Meetings are held between management and workers’ union and officers’ association to discuss their issues.

Fertilizer Dealers Consultation

Meeting with Fertilizer Dealers

During the year 2015-16, 82 Dealer meetings were held as compared to 40 Dealer meetings in 2014-15 respectively. RCF conducts program for dealers to impart the information/know-how about Govt. policies, terms and conditions of the company, use of fertilizer products for different crops, tie-up with different companies for mutual benefit and Fertilizer Control Order of the GoI. During the meetings, farmers concern like Non-availability of product at right time and right price are discussed. Corrective Actions: RCF started delivery of products at doorstep of dealers, instead of railway delivery point. It also reduces price of the product as cost of transportation from rake point to dealer warehouse, is borne by RCF.

21

Stakeholder Engagement

TypeForum Frequency and Agenda

Dealers and End Users of IPD

Consultation IPD Dealers meet

• All India meet held once in two years is considered as platform for dealers to meet top management of RCF. Issues relating to marketing, product quality and availability, policy matters etc. are discussed.

• Need based quarterly meet with customers: Issues relating to product quality and availability, weighing, dispatch, safety aspects, legal compliances etc. are discussed.

• Customer satisfaction survey conducted half-yearly for feedback of dealers on product availability, quality, loading etc.

• Felicitation of Dealers for outstanding performance on 26th January of every year.

Customer (Farmers) Consultation

Meeting with Farmers

During the year 2015-16, 948 Farmer meetings were held as compared to 446 Farmer meetings in 2014-15 respectively. Farmer meetings are held so as to disseminate correct and advanced agricultural technology to the farming community. The crop and product literatures are also distributed to them, followed by question and answer session where the specialists from company and agriculture dept. of the state satisfy the queries of farmers.

Customer Support services

Soil Testing: RCF also runs 19 soil testing laboratories (13 static and 6 mobile) in Maharashtra, Telangana, Andhra Pradesh, Karnataka, Chhattisgarh and Uttar Pradesh. Soil samples are collected from farmers by our marketing staff from all over the states. Soil samples are analysed for NPK and micro-nutrient contents and soil health card for each soil sample is issued to the farmer. During 2015-16, 1.4 lakh soil samples were analysed.

Method and Product Demonstration: In order to demonstrate and educate farmers the scientific practices, the method and product demonstrations are organized in the field of farmers wherein Agriculture officers extend technical knowledge to the farmers. During 2015-16, 114 Method demonstrations and 292 Product demonstrations were carried out as compared to 62 Method demonstrations and 390 Product demonstrations in 2014-15.

Toll free helpline: RCF runs a customer care no. (022 – 2552 3044) and toll free helpline service called as RCF Kisan Care no. (1800-22-3044) to help farmers. Information regarding use of fertilizers, soil testing, crops, cultivation practices of different crops, Variety, pest, disease, weed control, weather report, dealership, subscription of RCF Sheti Patrika etc. is given to the farmers. During the year 2015-16, we have received 15,527 No. of calls on our toll free helpline no as against 19,748 during 2014-15.

22

Stakeholder Engagement

TypeForum Frequency and Agenda

Farmers training: RCF runs Farmers Training Centre (FTC) at Nagpur and Alibagh, Dist. Raigad, where three days residential training with free lodging, boarding and to & fro transportation facility is provided to farmers. Employees of RCF and external faculties from Agriculture universities impart training to farmers, which helps to increase awareness in farmers. During the year 2015-16, 126 programs were organized at both the FTCs providing training to 6,352 farmers.During the year 2014-15, in all 92 programs were organized at both of our FTCs providing training to 5,826 farmers.

Sheti Patrika: RCF prints and distributes 66,000 copies of ‘RCF Sheti Partrika’ free of cost to the farmers. Inputs for the magazine are provided by RCF employees and articles are collected from numerous Agriculture scientists and professors.

Krishi Melas and Exhibitions

During the year 2015-16, RCF has organized 94 Krishi melas and 72 Exhibitions.During the year 2014-15, RCF had organized 63 Krushi melas and 53 Exhibitions.Exhibition sets are displayed at the venue to disseminate complete information about company’s products and different practices followed for various crops. During Krishi Melas, literatures about the crops and fertilizer products, their use in field etc. were distributed.

Suppliers Dialogue Pre-bid Conference

Pre-bid meeting is held with prospective suppliers or contractors. This is need based as per the requirement of item to be purchased or the project. During the pre-bid meetings queries of the prospective suppliers or contractors are addressed.

Community

Programs on Need assessment through third party like TISS and Cultural Events

RCF engages with local community as and when needed for conducting general safety awareness programs, and assessing needs (sanitation, healthcare, education) through third party like Tata Institute of Social Services (TISS).

Third party is also engagedfor providing logistic and financial support for cultural events during festival celebration at colony campus, sports events.

Contract LabourRCF engages with contract labour in pro-active manner and provides them with basic information about first aid, on-job safety practices, use of safety appliances etc.

RCF is also a part of several industry associations, through which it engages with a multitude of stakeholders. The associations with which RCF has corporate membership is mentioned in the table below:

Sr. No. Corporate Membership

1) Fertilizers Association of India (FAI), New Delhi.2) Standing Committee of Public Enterprises (SCOPE)3) The Associated Chambers of Commerce of India (ASSOCHAM)4) Indian Merchants Chamber, Bombay.5) Confederation of Indian Industry (CII), New Delhi.6) Bombay Chamber of Commerce and Industry, Bombay7) International Fertilizer Industry Association (IFA)

23

HIG

HLO

W

LOW HIGH

Imp

ort

an

t to

sta

keh

old

ers

Economic performanceProduct complianceEnergyWater

Freedom of association

Environmental Compliance Occupational H&S Emissions

Employment Effluents & Waste

Biodiversity

Customer H&S

Child Labour

Customer Privacy Equal Pay for Women & Men

Security Practices

Indigenous Rights

Local communities

Mktng. & Comm. Market Presence

Social Compliance

Environmental Investment

Procurement Practices

Training & Education

Human Rights Assessment

Supplier Human Rights screening

Public Policy

Anti-competitive behavior

Materials

Labour practices & grievance mechanism

Environmental Grievance Mechanism

Labour/Management Relations

Transport

Packaging material

Diversity & Equal Opportunity

Grievance Mechanism/impact on society

Non-discrimination

Human Rights Grievance mechanism

Product & Service Labeling

Indirect Economic Impact

Anti-corruption

Forced or compulsory labour

Supplier Human Rights Supplier Environmental

Supplier Society Human Rights Investment

Supplier Labour

Materiality Assessment

Based on the feedback from all key stakeholder groups mentioned earlier in the chapter and discussion with senior management at RCF, the below aspects were identified to be material:

Since this is the first year that RCF has adopted GRI G4 framework for its sustainability reporting, we have taken an exhaustive list of indicators for disclosures. In the coming years, we will refine our material aspects based on performance and stakeholder expectations.

The material aspects and their materiality vis-à-vis stakeholders and aspect boundary is given in the following table

Impact on RCF

24

GRI G4 Aspects Stakeholders considered Aspect Boundary

Economic Performance Current employees; Retirees; Shareholders; Credit agencies Internal/External

Energy Current employees; Shareholders Internal/External

Water Current employees; Shareholders; NGOs Internal/External

Environmental Compliance Current employees; Shareholders Internal/External

Occupational Health and Safety Current employees Internal

Materials (consumption) Current employees; Shareholders Internal/External

Product ComplianceCurrent employees; Shareholders; Dealers (Fertilizers);

Dealers & Distributers (IPD)Internal/External

Emissions Current employees; NGOs Internal/External

Effluents and Waste Current employees; Shareholders; NGOs Internal/External

Local Communities Current employees; NGOs External

Market Presence Current employees; Shareholders; Credit agencies Internal/External

Marketing CommunicationsCurrent employees; Shareholders; Dealers (Fertilizers);

Dealers & Distributers (IPD); SuppliersExternal

Procurement Practices Current employees; Suppliers Internal/External

Social Compliance Current employees; NGOs; Suppliers; Shareholders Internal/External

Training and Education Current Employees Internal

Non-discrimination Current Employees Internal

Environmental Grievance Mechanisms NGOs; Direct Customers (Farmers) External

Indirect Economic Impacts NGOs; Dealers (Fertilizers); Direct Customers (Farmers) External

Labor/Management Relations Current Employees; Shareholders Internal/External

Anti-corruptionCurrent Employees; Shareholders; Credit Agencies;

Suppliers; Dealers (Fertilizers); Dealers & Distributers (IPD)Internal/External

Transport Suppliers; Dealers (Fertilizers); Dealers & Distributers (IPD) External

Labor Practices Grievance Mechanisms Suppliers; NGOs; Direct Customers (Farmers) External

Supplier Environmental Assessment Suppliers External

Diversity and Equal Opportunity Current Employees Internal

Supplier Assessment for Labor Practices Current Employees; Suppliers Internal/External

Freedom of Association and Collective

BargainingCurrent employees Internal

Equal Remuneration for Women and Men Current employees Internal

Product and Service LabelingCurrent Employees; Dealers (Fertilizers); Dealers &

Distributers (IPD); Direct Customers (Farmers)Internal/External

Customer Health and SafetyCurrent Employees; Dealers (Fertilizers; Dealers &

Distributers (IPD); Direct Customers (Farmers)Internal/External

Biodiversity Current Employees; NGOs Internal/External

Employment Current Employees Internal

Supplier Human Rights Assessment Current Employees; Suppliers Internal/External

Supplier Assessment for Impacts on Society Current Employees; Suppliers Internal/External

Environmental Investment Current employees; Shareholders; NGOs Internal/External

Public Policy Current employees; Shareholders Internal/External

Anti-competitive Behavior Current employees; Shareholders Internal/External

Human Rights Grievance Mechanisms Current Employees; Suppliers Internal/External

Human Rights Investment Current Employees; NGOs Internal/External

Grievance Mechanisms for Impacts on Society Current Employees; NGOs Internal/External

Child Labour Current Employees; Shareholders Internal/External

Security Practices for Human Rights Current Employees Internal

Human Rights Assessment Current Employees; NGOs Internal/External

Indigenous Rights NGOs External

Forced and Compulsory Labour Current employees; Suppliers Internal/External

25

We at RCF strive endlessly to provide our customers with high quality fertilizers and Industrial Products. We are able to consistently achieve this through our focus on employing highly skilled and trained manpower, best of the class manufacturing technologies and a wide distribution network to ensure our products reach a wide spread of geographical areas. Through consistent focus on excellence, we have been able to create high brand values for some of our products which include Ujjwala, Suphala, Microla, Biola and Sujala. RCF has a wide portfolio of chemical products and can withstand difficult economic situations by adopting optimal mix of production.

Manufacturing and marketing of Fertilizers is the core business of RCF. Major raw materials such as LNG, rock phosphate are in short supply and needs to be imported. For potash we are fully dependent on imports as there are no known reserves of potash in India. This makes RCF susceptible to several global and local risks. There has been high volatility in the prices of raw material such as Natural Gas, Rock Phosphate, Sulphur, DAP and MAP, resulting in high pressure on the profitability. The Fertilizer and Chemicals business is exposed to cut-throat global market competition besides being affected by fluctuating crude oils prices, resulting in variable costs and low availability of natural gas. The recently implemented gas pooling policy for the fertilizer sector by the Government of India has provided some relief in this scenario. Besides these economic risks, RCF being an agriculture-centric company faces several climate change related risks such as drought, floods and extreme climate. On our part, we have made efforts to increase material efficiency and have also been able to reduce specific consumption of natural gas. To conserve water, we have taken several water conservation initiatives including conversion of sewage water into potable water.

Economic value generated and distributed

During 2015-16, total turnover (Gross) was `8761.64 Crore, and the Economic value retained (PAT) is 191.23 Crore. The trends for Economic value generated and economic value retained for the past 3 years are illustrated below:

Higher turnover during 2015-16 is on account of Swapping of gas which amounts to `528.13 Crore during 2015-16 as against NIL for 2014-15. Also profitability of the Company has impacted adversely during 2015-16 due to provision of `181.97 Crore made towards pooled price differential for its non-Urea operations.

Payment to suppliers has increased to `6951.63 Crore in 2015-16 as compared to `5435.6 Crore in 2014-15. In line with the MoU between RCF and Ministry of Chemicals and Fertilizers, GoI, which stipulates a minimum spend of 2% of the average net profits of the company during the three immediately preceding financial years, on Corporate Social Responsibility activities. RCF has invested `9.66 crore for community improvement projects, which is more than the stipulated amount. The wages and benefits paid to employees stood at `492.4 Crore for FY 2015-16. The details of economic value distributed for the past 3 years is presented in the table below:

For sustained agricultural growth and to promote balanced nutrient application, it is imperative that fertilizers are made available to farmers at affordable prices. The problems faced by the manufacturers in earning a reasonable return on their investment with reference to controlled prices, are mitigated by providing support under New Pricing Scheme (NPS) for Urea and the Nutrient Based Subsidy Scheme (NBS) for Complex Fertilizers. The statutorily notified sale price and indicative MRP is generally less than the cost of

Business Growth & Profitability

Economic Value generated (` Cr.)

FY 13-14 FY 14-15 FY 15-16

6661.67787.8

8761.610000

6000

4000

2000

8000

0

Economic Value retained (` Cr.)

FY 13-14 FY 14-15 FY 15-16

191.23

249.9

350

250

200

150

300

50

322.1

100

0

Parameters FY 13-14 FY 14-15 FY 15-16

Employee wages and benefits 444.2 526.2 492.4

Amount to suppliers 4490.5 5435.6 6951.6

Community investments 14.82 8.3 9.66

Shareholder returns 82.7 99.3 60.7

Government taxes 399.3 656.9 551.3

` Crore

26

production, irrespective of any manufacturing unit. The difference between the cost of production and the selling price/MRP is paid as subsidy/concession to manufacturers. RCF has received subsidies of `4574 Crore from the Government of India in FY 2015-16. RCF did not make any financial or in-kind contribution to political parties, politicians or related institutions.

Employee Wages and Benefits

The retirement plans offered by RCF are based on both ‘Defined Benefit Plans’ and ‘Contributory Benefit Plans’.’Defined Benefit Plans’ include Provident Fund, Gratuity, Leave Encashment, Post-retirement medical benefits. Provident Fund and Gratuity constitute mandatory retirement schemes which are self-managed by separate exempted Trusts. The provision towards leave encashment and post-retirement medical benefits

Employee / Employer Benefit

Percentage of salary contributed by employee

For Provident Fund @ 12% of Basic Pay and Dearness AllowanceFor Contributory Superannuation Scheme @ 10% of Basic Pay

Percentage of salary contributed by employer

For Provident Fund @ 12% of Basic Pay and Dearness Allowance For Contributory Superannuation Scheme @ 10% of Basic Pay Annual contribution to Gratuity Fund based on actuarial valuation

are made from company’s general resources every year as per actuarial valuation at end of financial year. The provisions made by the Company towards these benefits as on 31st March 2016 are as under:

E Leave encashment: `188.11 Crore

E Post-retirement medical benefit: `58.11 Crore

Contributory Benefit Plan consists of Contributory Superannuation (Pension) Scheme where both Company and Employees contribute. The same is managed by a separate Trust and is administered through a separate policy with LIC of India. RCF’s obligation to pay under this benefit plan is met from organization’s general resources. Details on contributions from employer and employee towards contributory retirement plans have been furnished in the table below:

RCF is a Central Public Sector Undertaking where the scale of pay is defined by Government of India for Officers and the same is uniform for all Officers located across the country. As regards workmen, the scales are decided by benchmarking to the scale of Officers which are also uniform.

The ratio of annual total compensation for the organization’s highest-paid individual to the median annual total compensation for all employees is 4.41, whereas the Ratio of % increase in annual total

The following table shows wages provided by RCF to workers of various grades starting from ‘Unskilled’ to ‘Highly Skilled’ workers and a comparison with local minimum wages as per legal requirement.

Location Level

Local minimum wage as per legal

requirements (`per month)

RCF’s entry level wage (`per month)

Ratio of the entry level wage to the

local minimum wage

Manufacturing Units

Highly Skilled 13224 47707 3.61 : 1

Skilled 13224 30326 2.29 : 1

Semiskilled 12524 25017 2.0 : 1

Unskilled 12024 22108 1.84 : 1

compensation for the organization’s highest-paid individual to the median % increase in annual total compensation for all employees is 4.11.

27

Judicial energy management is crucial for us to not only manage our environmental footprint, but also maintain our operational efficiency. The major source of energy for our operations is natural gas, which accounts for approximately 90% of our energy needs. Hence, the reduced availability of cheaper domestic gas coupled with rising LNG prices, has posed a major threat to the financial viability of our products. Cheaper imports of finished products has aggravated the situation further. Although the gas pooling initiatives taken by the Government of India for fertilizer companies promises to reduce the burden of volatility of natural prices on the fertilizer sector, we aim to increase the energy efficiency of our processes so as to optimize our natural gas consumption.

Apart from natural gas, we use electricity purchased from the grid and HSD to meet the rest of our energy requirements. Energy consumption across our manufacturing locations at Trombay and Thal are illustrated below:

consumed as fuel in both Thal and Trombay plant this year. Specific energy consumption values (in GCal/MT units) for urea at Thal and Trombay locations are provided below:

In order to reduce Specific energy consumption of Thal urea plant, RCF has undertaken installation of Gas Turbine of 50 MW Capacity. This will reduce specific energy Consumption of urea by 0.35 Gcal/MT.

Several initiatives have been taken across Thal and Trombay manufacturing units for conserving energy. The initiatives across various plants in Thal and the related cost savings are given below:

As can be seen in the above graph, the total direct and indirect energy consumed in Trombay has been showing a steady decreasing trendover the past three years. There has also been a reduction in Natural Gas

Energy Management

Energy consumption by source (Trombay) in TJ

2013-14 2014-15

HSD Electricity NG as fuel

2015-16

11057

14000

10000

8000

6000

12000

2000

4000

11759

0

10001189866 4.857

12941

Energy consumption by source (Thal) in TJ

2013-14 2014-15

HSD Electricity NG as fuel

2015-16

35000

25000

20000

15000

30000

5000

10000

29129

0

2305886 2.733

27554 29010

Trombay Urea Sp. energy consumption (GCal/MT)

2013-14 2014-15 2015-16

7.23

6

4

2

8

0

6.787.55

Trombay Urea Sp. energy consumption (GCal/MT)

2013-14 2014-15 2015-16

6

4

2

8

0

5.946.01 5.87

28

S.No Project description with unit location

Ammonia Line I

1 Pre-heating of fuel natural gas from 40°C to 100 °C with available waste heat.2 Installation of methanator interconnection to reduce start-up time.3 Provision of Control valve on NG line to CO2 Absorber

Ammonia Line II

4 Pre-heating of fuel natural gas from 40°C to 100 °C with available waste heat.5 Installation of methanator interconnection to reduce start-up time.6 Provision of Control valve on NG line to CO2 Absorber Urea Plant7 Installation of Ammonia preheater in Urea-11 and 21.8 Washing of CO2 compressor turbine in 11 and 31 unit. Steam Generation plant9 Washing of Turbo-generator EES

10 50KWp solar plant commissioned on 11.10.201511 Replacement of 2 ft LED tube (10 W) 200 Nos.12 Replacement of 4 ft LED tube (18 W) 1200 Nos.13 Replacement of 90 W street light fittings 315 Nos.14 Replacement of FLP LED light fitting (45 W) 230 Nos.15 22 W LED Well glass fitting (50 Nos.)16 Replacement of 60 W street light fittings - 80 Nos.17 LED type weatherproof well glass fitting (42 W) 100 Nos.18 120W LED HAIGH BAY Fittings (95 Nos.)19 Installation of Window AC 1.5 TR (21 No.)20 Installation of Split AC 1.5 TR (10 No.)21 Installation of package AC 11 TR (2 No.)

As can be seen from the above table, the energy conservation initiatives at Thal have resulted in a cost saving of `11.4 Crore.

The initiatives across Trombay plant are given below:

S.No Project description with unit location

1Ammonia I Plant• Reduction of Steam/Carbon ratio in Primary Reformer from 4.0 to 3.35• Cleaning of Waste Heat Recovery coils of Primary reformer by dry ice cleaning.

2

Steam Generation Plant• Dry Ice cleaning of Furnace in Boiler No. 1 & 3• Replacement of nine stage BFW Pump by eight stage BFW Pump in Boiler no.2• Improvement in Boiler efficiency by implementation of Lead-Lag/ cascade combustion control through DCS system.

3Suphala Plant• Provision of energy efficient motor in CPT-1 process air compressor reducing energy consumption by 45.10 MWh/year

4Trombay Urea Plant:• Installed VFD to Urea melt pump (P608-B) and optimized stripper steam control valve operation - steam saving by 3 MT/ Hr.

29

These estimated savings from these initiatives at Trombay plant from these initiatives stands at approximately `34.41 Crore.

The energy consumption outside the organizations boundary have been calculated, and they have come to be extremely miniscule as compared to that inside the organization boundary

National Energy Conservation week at Trombay

We celebrated National Energy conservation week at RCF Trombay Unit from 14th December to 21stDecember 2015. The activity of celebrating the energy conservation week was started from 14thDecember, the energy conservation day itself. With an objective to create more interest and awareness among all the employees about this concept Slogan, Essay, Energy Quiz & Poster Contest was organized. The common theme of the contest was Energy Efficiency, Energy Conservation and Renewable Energy.The above contests got overwhelming response from all the plants as well as departments in our unit. Overall about, 180 employees participated in the contests.The valedictory function was organised on 21stDecember 2015. On this day, a lecture by Shri. R.V. Nesari, freelanced Energy Auditor, was organised. During the presentation, Shri. Nesari who has a vast experience in the field of Energy Auditing, briefed about his experiences in the energy audit field. He also briefed about the process for ‘Marching to PAT Cycle-2’. The case studies of Energy Audits of Ammonia and Urea plants in India as well as outside India conducted by him were also shared during the presentation. On the same occasion, pamphlets highlighting necessity of Energy Conservation furnished by Maharashtra Energy Development Agency were distributed to all employees within the factory in order to create awareness about Energy Conservation amongst the employees.

We also use renewable energy in the form of solar water heaters in RCF Hospital, Factory Canteen and in Sewage Treatment Plant so as to reduce energy consumption of non-renewable sources. Through our solar fittings at Thal and Trombay, we have consumed 3120 GJ of solar energy across locations, leading tosaved GHG emissions. With the commissioning of 2 MW Solar PV plant at Trombay in January 2016, we have saved around 8,416 GJ till March end.

30

The increase in emissions in 2014-15 was attributable to higher production levels, by around 14%, as compared to the past year. For FY 2015-16, the total Scope I GHG emission is 35,93,000 tCO2e whereas the Scope II emission is 2,43,000 tCO2e. As can be seen from the graph above, the total GHG emission for FY 2015-16 has decreased as compared to 2014-15 by approximately 3%. The GHG emission has been calculated based on site-specific emission factors. Scope I emissions have been calculated taking into account Net Calorific Value of natural gas and high speed diesel. Scope II emissions have been calculated using standard grid emission factor of the grid as per CEA.

In addition to Scope I and Scope II, we have calculated Scope III emissions, which are extremely miniscule in Trombay. In Thal, the value for the same is 2453 tCO2e, which is only 0.06% of the total GHG emissions.

In line with the GRI G4 requirements, we have initiated calculation of GHG emission intensity per tonne of throughput of our major product, i.e. Urea, for this year. The GHG emission intensity per tonne for Urea plantat Trombay and Thal is 0.29 and 0.20 tCO2e respectively.

To reduce GHG emissions in our operations, we have taken several initiatives - both in-process improvement and energy efficiency enhancement. As GHG emissions are directly related to the overall energy consumption, all the energy efficiency improvement measures implemented by the company have also led to reduction in our emissions. Through these energy efficiency measures we have reduced more than 1,01,775 tCO2e for GHG emissions.

Air emissions

We at RCF have consistently endeavored to reduce our emissions. RCF monitors gas and particulate matter emissions through four dedicated continuous online Ambient Air Quality Monitoring Systems located around the boundary of the factory. The real time emission levels are publicly displayed at the entrance of the factory. As directed by Central Pollution Control Board, continuous online monitoring system is implemented and is in operation at both the units. We have taken measures to address air emissions across air categories, resulting in consistent reduction in all of them across years, as is evidenced from the graphs shown in this section.

At Trombay unit, we have Selective Catalytic Reactor (SCR) in both, Medium Pressure and High Pressure Nitric Acid Plants for NOx emission reduction. Regular maintenance of existing tail gas preheaters (EO5)

Emission Management

Selection of best available technologies for the plants and time to time up-gradation of technology help to maintain pollution free environment. RCF’s Environment Management System is ISO 14001-2004 certified demonstrating the company’s commitment towards Environment Protection. With effective pollution control systems in all the plants, pollution level is maintained well below the stipulated norms. Our production processes generate three Greenhouse Gases (GHG) which contribute to climate change viz. Carbon dioxide (CO2), Methane (CH4) and Nitrous Oxide (N2O). RCF has made conscious efforts to reduce the emission of these Greenhouse gases. We have carried out feed stock conversion from naphtha to natural gas which is considered as the cleanest fuel. We use natural gas to meet majority of our energy requirements and therefore our CO2 emissions are minimum.

We initiated the exercise of carbon foot-printing for both our plants in the year 2010-11 and have been updating the same every year. This exercise helped us in identifying and taking necessary steps in mitigating our emission levels. We initiated various energy conservation measures which indirectly reduced our Greenhouse Gas (GHG) emissions. As an initiative towards greener energy, we have already installed solar power generation facilities of 10 KWp each – two at Trombay and one at Thal Unit; two facilities of 2 KWp each at two marketing offices and a 50 KWp solar power plant at Thal. We have also set-up 2 MW Solar PV plant at Trombay unit. At Thal, we have set-up solar power generation units of aggregate capacity of 84 KW. Further, around 1.3 MW rooftop solar plants are in the offing, at Thal.To reduce GHG emission and improve the efficiency of captive power generation unit, we are in the process of replacing the existing steam generation based power generation units with more efficient Gas Turbine Generators, at our bothunits.

Our trends for total of scope I and scope II emissions for the past 3 years is given in the graph below:

Total GHG emissions (000’ tCO2e)

2013-14 2014-15 2015-16

4500

350030002500

4000

1500

2000

3946

1000

500

3240 3836

0

31

We have taken a number of initiatives in Sulphuric Acid plant to reduce the SOx emissions. Some of the major initiatives taken in the past are as follows:

1) V2O5 catalyst is replaced with MECS catalyst in the Primary and Secondary Converter.

2) For reduction of acid mist, candles of Intermediate Absorption tower (IAT) are replaced with new candles

3) Installation of new Final Heat Exchanger (FHE) to reduce emissions due to leakages.

4) New Final Absorption Tower (FAT) is installed to minimize the acid leakage

The SOx emissions for the past three years is given is illustrated below:

Similarly, there has been a slight reduction in particulate matter this year as compared to last year. The particulate matter emissions for the past three years is given is illustrated below:

We do not use any Ozone Depleting Substances (ODS) in our processes except them being used in air-conditioning units and chillers at RCF. Hence our consumption of such substances is very low. Following graph shows emission of ODS in tonnes during last three years:

NOx emissions (in tonnes)

2013-14 2014-15 2015-16

327.37

500

300

200

100

400

0

445.1

381.65

Emission of SOx (in tonnes)

2013-14 2014-15 2015-16

150

100

50

200

0

116.53

165.14183.71

Emission of Particulate Matter (tonnes)

2013-14 2014-15 2015-16

1200

1000900800

1100

600

700

1099

500

400

10751048

300

200100

ODS consumption

2013-14 2014-15 2015-16

0.50

0.30

0.20

0.10

0.40

0.00

0.47

0.21

0.29

and other heat exchangers in both Nitric Acid plants, is carried out to prevent the chances of process gas leakage. The NOx emissions for the past three years is given is illustrated below:

32

In the days when most of the companies are being charged with gobbling natural resources. RCF has set an example for other companies. RCF has gone ahead and established a unique plant wherein it treats the 22.75 million liters per day (MLD) of sewage in Sewage Treatment Plant located in its complex at Chembur. The plant serves a dual purpose. Firstly, it solves the issue of treatment and disposal of 22.75 MLD of sewage. Secondly, it relieves BMC’s from the obligation of supply of 15 MLD of drinking water.

RCF’s Sewage Treatment Plant is one of the many initiatives undertaken to help the city protect its environment and conserve its scarce natural resources. The vision of RCF can be gauged by the fact that very few projects of this capacity exist in the country.

Sewage Treatment Plant is a unique example of meeting industrial water requirement through Sustainability development project.

Water generation through sewage treatment

The Sewage Treatment Plant at Trombay isone-of-its-kind in the country. The plantis based on conventional Activated Sludge Process followed by Reverse Osmosis (RO). The sewage received from BMC is cleaned, aerated, filtered, chlorinated and made virtually fit to drink using five-stage recycling technique. The plant treats around 22.75 Million Liters per Day (MLD) of sewage received from MCGM which otherwise would have been drained in to the sea after minimum treatment. The plant generates about 15 MLD of treated water which is being used in our plants as process water. STP meets about whopping 55% of process requirement of our Trombay unit.

The advantages of setting up Sewage Treatmentplant are manifold, which have been enumerated below:

• Sewage Treatment Plant has improved availability of process water for operation of our plants at Trombay unit and has enhanced overall reliability of operations.

• Besides being beneficial to RCF, it is of great help to residents of Mumbai and society at large, as about 15 MLD of potable water which would have been earlier supplied for industrial usage, is made available for the domestic use.

• RCF along with BPCL are setting up New Sewage Treatment plant. RCF shall supply part of the treated water to BPCL.

• New Sewage Treatment plant will additionally treat 22.75 MLD of sewage and shall make the Trombay unit completely self-sufficient. When new

STP becomes operational, it will make additional 15 MLD of water available to residents of Mumbai.

• RCF’s unique initiative of treating raw sewage in STP has allowed MCGM to channelize distribution of more water to low-income group and slum areas, where more than 75% of the residents are considered as Water Deficient Households (where water consumption is less than 100 liters per consumer per day).

In RO section of STP, RO units recover 75% to 80% of water as good quality water and balance water is rejected. This rejected water from RO is called as RO reject water. About 7,000 m3 of RO reject water is generated every day. Although, part of the R.O. reject water was being used to meet for low grade requirements, still major portion of R.O. reject water was not being utilized and was sent to Effluent Treatment Plant (ETP) as waste water. To address this issue we have implemented a scheme to utilize this RO reject.Currently we are recovering 50% of good quality water from the RO reject water. For full utilization of the RO reject,we have extended the reject water network for use in ANP, Suphala, Phosphoric Acid Plant, Sulphuric Acid Plant and Concentrated Nitric Acid Plant.STP reject water is used in ANP and Suphala Plant scrubbers, cleaning and washing of equipment and tanks.

We have optimized the certain process parameter which has saved equivalent energy and water in Ammonia and Urea plants. Utilisation of process condensate from the MP stripper in Ammonia-I plant, refurbishing of Cooling Tower in Ammonia-V plant &use of recycle of water for scrubbing in Urea plant have helped in reducing water consumption.Through STP, we have been able to produce close to 4.61 million m3 of treated water in STP in 2015-16, thereby making equivalent quantity of fresh water available to residents of Mumbai for domestic purpose. Balance water requirement is being met by municipal supply. The water produced in sewage treatment plant at Trombay for the past three years is depicted below:

Water Management

Water produced in STP (million m3)

2013-14 2014-15 2015-16

5.55

4.5

6

3.5

4

5.31

3

2.5

5.21

4.61

2

1.51

33

At our Thal plant, 100% of water is sourced from MIDC. We do not draw any ground or surface water. The wa-ter consumption across locations for each water source is illustrated in the graph below:

As can be seen from the above graph, the water consumption at Trombay as well as at Thal Unit has reduced as compared to the previous year. This is a result of several water conservation initiatives we consistently take so as to ensure optimum utilization of water. The following conservation techniques are utilized at RCF:

• Recycle and reuse of effluents so as to ensure least waste water disposal

• Maintaining high Cycle of Concentration in cooling towers

• Reusing effluent treatment water for floor washing in various plants

• Mixing STP reject water with Gypsum to make slurry so as to convey it to gypsum pond through pipe for open drying

• Using reject water from sewage treatment plant for horticulture

• Utilization of RO reject in place of fresh water for low grade applications such as Gypsum slurry preparation, toilet flushing etc.

• Emphasis on recycle, reuse and reprocessing of solid waste generated.

Also, At Thal, MIDC Water quality is also improved by taking measures at the river bed by RCF. River water is passed through Clariflocculator, where Alum is dosed as per requirement. Sufficient settling time is given for flocculation. In this process, colloidal silica is removed to a great extent, reducing the turbidity of the water. This has resulted in lesser blow-down at boilers, thus less wastage of water.

The trend for water recycled as a percentage of total water consumed has been depicted below:

Some of the major effluent recycle schemes that are being operated in Trombay are mentioned below

n Use of STP reject in place of fresh water in tail gas scrubber in granulation section of Ammonium Nitrophosphate plant.

n Reduction in effluent generation in STP by about 36% due to implementation of 6th RO for reject water reclamation.

n Use of STP RO Reject water for equipment cleaning, floor washing etc. leading to conservation of Process water.

n Reduction in effluent generation in Urea-V Plant by about 8% as Ammonical Urea effluent is used in PAP for gypsum slurry washing to maintain pH.

n Recycle and reuse of process water to reduce the process water consumption

n Using STP reject water as Second wash of Gypsum filter in Phosphoric acid plant.

n Reduction in effluent generation in Suphala Plant by about 22% due to recycling of effluent back to process and use of reaction scrubbing liquid for preparation of Urea solution rather than using fresh water.

n Generated Ammonical effluent is reused as water flushing condensate in HP Carbamate Pump in urea plant.

n Use of reaction scrubbing liquid for preparation of urea solution instead of fresh water in Suphala Plant for improved nitrogen efficiency and reduction in effluent

Since all our water comes from STP or municipality, no major sources of water are affected by our water withdrawal.

Water consumption per source (million m3)

2013-14 2014-15

Water from STP-Trombay

Water from BMC-Trombay

Water from MIDC Thal

2015-16

20

15

5

10

17.30

0

3.84.073.734.61

5.315.21

17.17 17.07

% of water recycled

2013-14 2014-15 2015-16

16

14

12

18

8

10

17

6

4

1415

2

34

Waste Management

At RCF, we believe in conserving our natural resources through 3R’s – Reduce, Recycle and Reuse. We have taken a major initiative to conserve water by ensuring about 55% of total process water requirement of the factory is met by treating municipal sewage in the in-house 15 MLD Sewage Treatment Plant. In the year 2015-16, about 15%of the waste water is recycled in the plant. We also take several steps to segregate and dispose off hazardous waste in a responsible manner.

Effluent Treatment

RCF has Central Effluent Treatment Plant (CETP) for treating effluents generated from individual plants. The broad process for effluent treatment at RCF is as shown below

The usable effluent is reused in followingways as part of our Reduce-Reuse-Recycle philosophy:

• Use of STP Reject in place of fresh water in tail gas scrubber in granulation section of Ammonium Nitrophosphate Plant.

• Use of STP RO Reject water for equipment cleaning, floor washing etc. leading to conservation of Process water.

• Using STP reject water as Second wash of Gypsum filter in Phosphoric acid plant.

• Ammonical effluent is reused as water flushing condensate in a pump in urea plant.

• Use of reaction scrubbing liquid for preparation of urea solution instead of fresh water in Suphala Plant for improved nitrogen efficiency and reduction in effluent.

• Recycle of rich effluent in Suphala, PAP and ANP plants to reduce effluent generation as well as increase in nutrient recovery.

• Use of Urea effluent to neutralizepH of Gypsum slurry in Phosphoric Acid Plant.

• Use of RO reject water for washing, cleaning and gardening

After the process of treatment is completed, the effluent which is not usable is discharged to deep sea, in conformity with Maharashtra Pollution Control Board (MPCB) standards. The values of quality parameters for treated effluent discharge are well within permissible limits of the MPCB. The total amount of effluent discharged over the last three years is depicted below:

Liquid effluents generated in each process

plant are collected in dedicated effluent pits installed in each plant.

The effuents are treated for the removal of fluorides,

phosphates, suspended solids, ammonical nitrogen, and

nitrate nitrogen and for the correction of pH.

Regular monitoring of effluent generation and

quality done to ensure they are within limits

Effluent discharged (million KL)

2013-14 2014-15 2015-16

2.382.61

3.5

2.5

2

1.5

3

0.5

2.88

1

0

35

Installation of Bench Scale unit for recovery and recycle of undissolved solid nutrients in ANP plant

The effluent generated in Complex fertiliser, Ammonium Nitro-Phosphate (ANP)(NPK 20:20:0) plant granulation section contains nutrients such as Ammonical Nitrogen, Nitrate Nitrogen & Phosphates in dissolved and undissolved form. To recover undissolved solid nutrients from the effluents, our R&D department has installed a bench scale pilot plant at ANP plant. The installation was completed on 4th December 2015, and the commissioning of plant was completed on 21st December 2015.

In the system 12 M3 to 20M3 of effluent with solid nutrient content about 3.5 to 5.0% was processed to get nutrient slurry with concentration of solid nutrients @60-70%. This leads to recovery of undissolved solids nutrients @0.8-1.0 MTPD. This is equivalent to 0.8-1.0MT of Suphala (NPK) product. This corresponds to a saving of `22,056/day. The expected annual savings are approximately `55 lakhs @250 stream days. Apart from nutrient recovery and recycle of nutrients from effluent, load on Effluent treatment plant is also reduced.

Hazardous and Non-hazardous waste

At RCF, we segregate hazardous and non-hazardous waste and dispose the same using scientific methods and/or sell to registered recycling agencies like MSTC. We have membership with Mumbai Waste Management, Taloja, Thane for disposal of Hazardous waste. We strictly adhere to the e-waste Management rules. 2016, which superseded the e-waste (Management & Handling Rules), 2011 for disposal of our e-waste.

36

Hazardous waste (in MT)

2013-14 2014-15 2015-16

3000

2000

1000

4000

0

29732580

2282

Non-hazardous waste (in MT)

2013-14 2014-15 2015-16

5000

3000

2000

1000

4000

0

940

3941

1554.76

The different types of hazardous waste generated over the past three years at RCF, and their respective amounts and disposal method is illustrated in the table below:

The different types of non-hazardous waste generated over the past three years at RCF, and their respective amounts and disposal method is illustrated in the table below:

All above non-hazardous waste is sold through MSTC. No significant spills have taken place in all RCF locations.

Sr. No. TypeQuantity (MT)

Mode of Disposal2013-14 2014-15 2015-16

01. Used Oil 47.315 53.7 71.035 Sold to re processors authorised by MOEFCC/CPCB

02.Sludge arising from treatment of waste water

1850 2291 2550Sludge generated from Effluent Treatment Plant is being recycled in Suphala(NPK 15:15:15) plant along with main raw material

03.Sulphur sludge from Sulphuric acid plant

83 89 78 Sulphur Sludge generated from Sulphuric acid plant is recycled Suphala (15:15:15)

04 Spent Catalyst 245.49 172.11 124.870

Spent Catalysts are sold to re-processors authorised by MoEFCC / CPCB and the sale is carried out through M/s. MSTC. Catalyst not Sold is Disposed of to MPCB approved disposal site. Catalyst disposed to M/s. MWML, Taloja

Type of waste Units 2013-14 2014-15 2015-16

Scrap Bags MT 44.8 169 79.68

Scrap Metal MT 879.3 3575 1365.3

Scrap Plastic MT 0 46.3 45.1

Scrap Aluminium Cable MT 0 41.7 47.1

Scrap copper cables MT 16.2 27 0.74

37

Material Management

As discussed in our earlier sections, Natural Gas is our primary raw material and hence ensuring processes efficient in Natural Gas usage is imperative for us. The availability, pricing and priority of allocation of natural gas have been areas of concern for the fertilizer industry. Thus it is essential for us to make all possible attempts to improve our natural gas consumption efficiency. Our natural gas consumption over the last three years has been mentioned below:

Material Consumption

The material consumed at RCF for the past three years is given in the table below:

Purge gas from Methanol Plant and Ammonia – I plant synthesis section as well as Off Gases from Urea Plant are being used as fuel in boilers at Steam Generation Plant in order to reduce natural gas consumption. Similarly, at Thal unit, waste gases generated from Hydrogen Gas Recovery Unit (HGRU), Purge Gas Recovery Unit (PGRU), Argon Plant and Urea Plant are used for gainful purposes in Primary Reformer and Steam Generation Plant.

RCF has considerably increased reuse of process waste materials namely Purge gases, ETP sludge, sulphur sludge and gypsum (by product) in its operations.

Natural Gas Consumption as feedstock (‘000 SCM)

2013-14 2014-15 2015-16

1200000

800000

600000

400000

1000000

200000

1092852 10624001135272

Waste Gas usage (GJ)

2013-14 2014-15 2015-16

1,500,000

1,000,000

500,000

2,000,000

0

1,663,775

1,208,3021,217,916

Process waste and by-product reuse (MT)

2013-14 2014-15 2015-16

13846

2148625000

20000

15000

30000

5000

23828

10000

0

Material Unit 2013-14 2014-15 2015-16

Rock Phosphate MT 185654 242152 195979

Mono Ammonium Phosphate

MT 86,566 91269 82147

Di Ammonium Phosphate

MT 538 19934 39866.71

Muriate of Potash MT 88,269 102785 121429

Sulphur MT 21509 31180 24882.56

Soda Ash MT 3411 3074 182.6

Caustic Soda Lye MT 2434 2406 2917.23

Lubricants (Lube Oil)

KL 330 249 205.47

Greases Kg 2790 3069 3438

Sulphuric Acid MT 1403 1376 3962

Methanol MT 16875 18544 15178.24

Acetic Acid MT 1900 1383 1168.5

Total Packaging material used for the past three years is mentioned in the table below:

Currently, RCF does not reclaim packaging materials from the customers.

Material Unit 2013-14 2014-15 2015-16

HDPE Bags Number 51976054 60758868 64178182

PVC lined

HDPE bagsNumber 7672336 6525913 4559336

Plastic

BottlesNumber 228145 421680 4572277

M.S.Drums Number 84093 69166 24925

38

Biodiversity Management

RCF factory at Trombay covers around 560 acres of area and more than 30% open land is already under green cover. Keeping in view the climatic conditions and status of soil, species of plants are selected for plantation. Mangium trees are planted along the boundary wall as it grows better in humid tropical climatic conditions. Available open space in the premises is also covered by plantation of fruit yielding and shade trees. Fruit plants like Sapota, Guava and custard apple are planted near Effluent Treatment Plant and Sewage Treatment Plant. Karanj trees are planted along the roads to stop soil erosion. The RCF Trombay unit residential colony has variety of forest plant species that include Palas (Butea monosperma), Shisam (Dalbergia lati folia), Sawar (Bombax ceiba), Neem (Azardiracta indica), Teak (Tectona grandis), Saja/Ain (Terminalia tomentosa), Shirish (Albizia lebbeck), Awala (Emblica officinalis), Kadamba (Anthocephalus cadamba), Karanj (Pongamia pinnata), Tamarind, Ashoka, Arjuna (Terminalia arjuna), other Terminalia species, Acacia spices, Ficus species (Vad/ Pimple / Ornamental rubber tree, Umbar), Putranjeeva, Raintree etc. In addition to this, various types of fruit tree species like Jack fruit, Jamun, Mango, Mulberry, Coconut, Tad tree, Badam, Guava, Sapota, Pomegranate, Beal fruit, Ramphal, custard apple, cashew nuts etc., are present in RCF Trombay colony.

As a part our National mission of Swachh Bharat Abhiyaan, major cleaning drives have been carried out both in RCF Trombay and Thal Factory area and in township. This drive was not only limited to cleaning surroundings but a massive tree plantation is also done in factory area. As a part of Waste reduction and recycling program 3R methodology is adopted for Solid & liquid waste generated in unit. Green Belt Development activity is not only limited in and around factory premises but efforts are also taken to develop the neighborhood areas of the factory. Maintenance and beautification of Acharya Garden (Diamond garden) has been done at Chembur in co-operation with Brihan Mumbai Mahanagarpalika to serve the public of Mumbai.

Green cover in and around the premises is conserved through various initiatives as stated above. Horticulture department with dedicated manpower is engaged to help in maintaining biodiversity & conserving biodiversity in & around the complex. Several Nurseries are established & tree plantation programs are undertaken.

Biodiversity in India is under threat from increasing urbanization. One of the major threats is improper disposal of municipal solid waste. As an initiative for proper disposal of Municipal waste, a Biogas Plant wasinstalled in Shatabdi Hospital, Govandi for Biogas generation from Hospital waste at a cost of `18 lakh.

We have conducted Environment Impact Assessment (EIA) study as per Environment Protection Rules by Ministry of Environment and Forest and Climate Change (MoEFCC) for Thal unit. It includes the impact assessment and risk analysis on biodiversity. RCF is well aware of the importance and conservation of green belt in and around its fertilizer complex and have about 1,000 species of trees within its premises. The Thal Factory, which extends over

an area of 800 acres, has more than 35% of green belt, with approximately 277 acres of land under green belt coverage. The Thal plant is a very rich from a bio-diversity perspective. It has been observed that out of 1051 species found in the Raigad district, 559 are present within the RCF establishment. About 660 vascular plants belonging to 37 families were observed in RCF Thal campus. The various varieties like Medicinal plants, oil yielding plants, Fodder plants, Dye yielding plants, fiber yielding plants, edible plants etc., are found in the RCF Thal campus. It also holds about 425 indigenous indicant trees making for 66.39% of the trees, leaving 33.6% for invasive plant species. There are a few tall trees of endemic origin in the RCF Thal campus as the vegetation of RCF is mainly composed of thorny scrub jungle and grassland. The small sized trees prominently include Bor – Zizyphus mauritiana Lam, Peru – Psidium guajava, Sitaphal –Annona sqamosa, Pangara – Erythrina stricta, Ghol – Trema orientalis etc. The tallest trees in the campus are Eucalyptus globules Labill (About 40 feet), Plyalthia longifolia (Sonner – about 30 feet). Some of the other tall trees in the campus are Roystonia regia, Zyzygium cumini, Mangifera indica, Terminalia catapa, Anthocephalus chinensis, Tamarindus indica, Araucaria excelsa, etc.

Besides the green belt development within the factory premises, a huge natural marshy area representing mangrove wetland of about 35 acres is present as well. These mangrove patches dominated by Avicennia Manna were categorically pressed and nurtured by undertaking large scale mangrove plantation. The other major mangrove species found include Canthus ilicifolius, Ceripos tagal and Rhizophora muchronata. The associated species of mangroves are Clerodendron inermi, Savadora persica, Sesuvium partulacastrum and Pandanus odorati ssimus. While Avicennia marina and Acanthus ilicifolius were observed in patches throughout the coastal zone within the study area. Ceriops lagal showed limited distribution and Rhizophora muchronata are found only inside RCF complex. The estimated number of these plants within the factory premises is about a 100,000.

No significant negative impacts of our activities, products and services have been observed on the biodiversity of areas surrounding out locations. No habitats have been significantly affected by RCF’s discharges of water and runoff. No IUCN Red List species and national conservation list species are present in habitats in areas affected by operations.

39

Expenses on waste disposal, emissions treatment and remediation (in `lakh)

2013-14 2014-15 2015-16

Waste disposal and treatment cost

17.6 37.22 72

Treatment cost for air emissions (Stack monitoring, filters, agents etc.)

9.8 9.3 4.79

Operation and Maintenance, material and services, and related personnel costs for running ETP and STP

4096.2 3453.6 4317.5

Expenditure for waste disposal and emission treatment is given in the table below:

*The significant rise in extra expenditures to install cleaner technologies in FY 2015-16 as compared to FY 2014-15 isdue to installation of New STP project and Solar panel project. And also this expenditure includes the Scheme implemented by our Plants for resources management and prevention environment pollution. Also, there has been a significant increase in consent fee due to the fees we paid to MPCB for obtaining consent to operate this year, which is renewed every 5 years, and hence does not reflect in the last 2 year’s expenditures. There also has been a significant increase in Research and development cost on environment impact reduction due installation of Nutrient recovery unit in ANP plant by R & D Department.

There was no significant fines and non-monetary sanctions for non-compliance with environmental laws and regulations. Also, no significant environmental impacts of transporting products and other goods and materials used, for the organization’s operations/transporting members of the workforce, were found.

Expenses on packaging material (in ` lakh)

2013-14 2014-15 2015-16

Certification costs for Quality, Environmental, Health and Safety Management systems

1.5 1.5 5.2

External services for environmental management

21.3 17.97 16.5

Extra expenditure to install cleaner technologies*

1911.4 1342.32 17706

Water Cess 8.2 8.7 24

Consent Fee* 0.2 0 176

Research and development cost on environment impact reduction*

0.6 0 44

Environmental Investment

RCF has been active in taking efforts for environment protection to ensure clean environment, beyond satisfying all stipulated requirements laid down by the statutory authorities, around its operating units. The following table provides a brief detail of the expenses incurred on account of environmental protection:

40

Product Responsibility

RCF realizes that its products and services impact its customers and society at various stages of the life cycle. For this reason, we continually evaluate our fertilizers and other products for quality and effectiveness.

Our R&D department gives importance to health, safety and environment aspects during the product development

stage. We have established stringent specifications and quality parameters for various raw materials used. Throughout our production process, we maintain a strict control on any negative impact from our product. The table below shows the impact of our products and operations in the communities we operate in:

Location of Operation Potential /Actual impact Prevention/ Mitigation measure implemented

Ammonia, Urea and Complex fertilizer production & Ammonia storage tanks

Emission of Ammonia is the possible threat however due to adoption of preventive measures the actual impact will be minimum

• HotflarestackinSynthesis&Ammoniastoragetankeliminatesthechancesof ammonia emission to atmosphere.

• Purgegasrecoveryunitforrecoveryofammonia.• DoublewalldoubleintegritynewAmmoniastoragetanktoensuretotal

safety.• InstallationofMPCondensatestripperforrecoveryofAmmoniafrom

condensate.• HydrolysersystemforrecoveryofAmmoniafromwastewaterstreamin

Urea plant.• InstallationofNewLP/Wastewaterventgasscrubberforrecovering

Ammonia from the LP/Waste water vent gases in Urea plant.• ExportingofMPsectionVentgasesofUreaplanttosteamgenerationplant

& using as a source of fuel reduces the chances of Ammonia emission.

Nitric acid, complex fertilizer production

Emission of NOx is the possible threat however due to adoption of preventive measures the actual impact will be minimum

• SelectivecatalyticreactorsystemforabatementofNOxemissioninHighpressure and Medium pressure Nitric Acid Plants.

• ChilledwaterscrubbingsystemisinstalledtoreduceNOxemissioninConcentrated Nitric acid plant.

• Technologyup-gradationofConcentratedNitricAcidplant&adoptionofQVF technology.

Sulphuric acid production

Emission of SO2 and Acid mist is the possible threat however due to adoption of preventive measures the actual impact will be minimum

• ProcesschangedovertoDCDA• Brinkmisteliminatortoreduceacidmist.• AlkaliStart-upScrubbertoreduceSO2emissionatthetimeofStart-up.• VentStackheightisincreasedto55Meterstoreducegroundlevel

concentration.• ReplacementofCSgasductswithSSDuctsdonetominimizegasleakages.

At Trombay, for ascertaining Health and Safety Impacts, HAZOP studies carried out and JSAs are made for Suphala New Reaction section and RHS section jobs. Additionally, Safety Report & ECP are updated and submitted to DISH. Product stewardship P&S protocol and PSM are implemented along with use of LOTO system. Various audits like Safety Audit, Fire Audit, Electrical Safety Audit are conducted and recommendations are implemented. Additionally, environmental impact assessment and risk assessment studies are conducted for major revamps, projects.

Adoption of these measures helps not only in complying with legal requirements but we could also achieve a standard beyond legal compliance.

For past three years, there were no incidents of non-compliance with regulations and voluntary codes concerning health and safety impacts of products and services during their life cycle. We also provide information on the contents of the products as per the applicable laws. We also source the components of our products as per the applicable laws. 100% of our product categories are covered by and assessed for such compliance mentioned above.

During the distribution phase, we ensure our fertilizer products are transferred in a safe manner and stored in godowns designated for fertilizer storage only to ensure that there is no contamination of any other material. Distribution of industrial chemicals is done through tankers which meet all government guidelines/safety measures to prevent leakages of any kind. RCF provides safety training to the tanker drivers carrying industrial chemicals produced in the company and necessary certificates are issued to them. To ensure sustainable use of our fertilizers we provide guidelines and training to the farmers on correct use of fertilizers.

There were a total of 4 incidents of non-compliance with regulations concerning product information and labelling within the reporting period resulting in penalty or fines. None of our products are banned in any of the markets that we sell in. Further there were no incidents of non-compliance with regulations or voluntary codes concerning marketing communications within the reporting period. Also, no significant fines were incurred for non-compliance with laws and regulations concerning the provision and use of products and services. There is no sale of banned or disputed products by the company

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Employee Management & Labour relations

Human Resource Development (HRD) is given paramount importance at RCF. Continuous grooming of employees provides them with empowerment and motivation to achieve excellence. Several initiatives have been taken by the HR Department to ensure our employees are happy and productive, and play an important part in maintaining our culture of excellence. Some of those initiatives are mentioned in section below:

Initiatives by Human Resources Department

The HRD at RCF has laid out certain interventions which are:

• Strengthening a learning culture by effective training and development, total employee involvement, achieving high performance standards through performance management system and adherence to ethical values.

• Providing avenues for growth and need based cross functional mobility of employees to harness their full potential. Ensuring growth of each employee in the organization through a carefully worked out career advancement scheme. Implementing redeployment strategy for manpower optimization.

• Developing and nurturing an organizational climate which encourages creativity and innovation.

• Making proactive efforts to maintain cordial industrial relations and discipline through a system of periodic interaction with employee collectives.

• Laying down of all the employee related policies properly and following these transparently. At RCF the morale and motivation of our employees, their commitment to the growth of the Company have immensely helped us become one of the leading chemicals and fertilizers company in the country. We believe that to ensure consistent performance from our employees we need to continually build competencies and ensure safe working conditions.

At RCF, the policies are fully aligned with the corporate goals and we believe that if our employees are happy, our stakeholders will in-turn be prosperous. Below is a list of our major HR systems and processes we have in place:

Performance Management

• In order to increase the overall productivity, five marks are allotted in Performance Appraisal for participation in Employee engagement activities like 5-S, Suggestion Scheme, Kaizen, QCS, IMS, Quiz contest etc.,

• PMS is made to focus on actual targets, which are SMART(Specific, Measurable, Accurate, Real and Tangible). Targets under PMS are decided mutually by the appraiser and the appraise for SMART targets.

• The system also provides for appraising the outcomes on a consistent and regular basis. Midterm feedback has given a chance to improve and overcome drawbacks/weaknesses and works as a motivator for further improvement and achieve set targets. A Critical Incidents Diary is maintained by the Appraiser for this purpose.

• On completion of Assessment year, PAS scores are informed by email and final feedback is given to the employee by appraiser on how to improve/ maintain performance level

• A KPA for Senior Managers is introduced dedicated to performance management activities by allotting 5 marks for strict adherence to PAS Schedule.

• For handling such poor/unsatisfactory performance, a Performance Improvement Plan (PIP) has been introduced in the prescribed format.

• Five marks are also dedicated in PAS of Senior Managers for identification of training needs & facilitating and ensuring training for the staff working under their control, for evaluation of the learning and thereby making career progression path for improving performance for individual.

• To measure the performance Bell Curve Approach has been applied in PMS Rating as per the Govt. Guidelines issued in this regard.

“HR Aapke Dwar” Drive

This is a new initiative by the HR Department. In this a team of HR personnel visits different plants / departments / Marketing area offices in the organization to interact with employees. This is an effective communication medium where one-to-one interaction of the employee takes place with HR Team.Issues related to work place, personal grievances, HR, Administration, medical etc. are discussed. Also information on various new initiatives, prevalent guidelines are deliberated and doubts if any are clarified. This also helps in developing informal atmosphere at the work areas, which helps in creating congenial atmosphere. This also helps to bring about transparency in the HR initiatives. This drive is a continuous process for better interaction and sharing with the employees in the company. Since all the Departments are covered in Phase I, now HR Department has started Phase II of ‘HR Aapke Dwar’.

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Business Excellence Model

The European Foundation Quality Model (EFQM) adopted by Confederation of Indian Industry (CII) is being implemented in RCF Ltd in association with CII with the following objectives:

• Adding value for Customers

• Creating a Sustainable Future

• Developing Organisational Capability

• Harnessing Creativity & Innovation

• Leading with Vision, Inspiration & Integrity

• Managing with Agility

• Succeeding through the Talent of People

• Sustaining Outstanding Results

EFQM Excellence Model states that based on the five enablers namely Leadership, People, Strategy, Partnerships & Resources and Processes, Products & Services; Results can be obtained pertaining to People, Customer, Society and Business.

Apex Committee comprising of Executive Directors and above level officials has been constituted. Core Members from Thal, Trombay and Marketing Division have been identified. Awareness Training and Core Member Training has been imparted. Exercise of Gap Analysis has also been conducted. It is planned to participate in the Business Excellence Award constituted by CII in collaboration with EXIM Bank in the coming year.

Document Management System (DMS)

The implementation of DMS system will help in reducing the paper work as the process involves creation all files and documents in system generated format. Instead of maintaining physical files, there will be scanned documents saved in the respective files. This will help to save paper and have the records easily available in the system. The records will be able to be derived in least possible time.

Currently the personal files of superannuated employees are already scanned and saved in the systems. Further, the scanning of the personnel files of the active employees of RCF are in process. For some of the HR activities like processing NOC for Passport work flow is also being designed through the system.

Participatory Gender Audit

To take a step further towards upgrading the policies and system directed towards employee’s organisational and personal growth, Company has now initiated an activity to understand the present mindset of employees towards the issues of gender equality. In view of this, Participatory Gender Audit recognised by International Labour Organisation was carried out.RCF is the first

PSU to have conducted Participatory Gender Audit. The major steps involved for the audit were:

• An extensive Desk Review

• Interviews

• Collective Workshop

To strengthen this initiative Gender Equality Policy of the Company has been issued and Gender Budget has been provided for the activity of Gender Mainstreaming.

PCMM for systematizing the policies and procedures

The company has obtained certification for “People Capability Maturity Model” (PCMM) Level 2 for the advancement of the procedures and systematizing the procedures. PCMM is a roadmap for implementing human resource practices that continually improve the capability of an organization’s human resources. Objectives of PCMM are as under:

• Improve the ability of the organizations to attract, develop, motivate, organize and retain talent.

• Focus on Employee development.

• Ensure alignment between the individuals’ personal aspirations and organizational objectives.

• Clarity on career progression and growth.

• Employee participation & empowerment.

• Instil the best HR practices and procedures.

• Transparency in practices.

After achievement of Level 2 of PCMM in People Management the next target is certification of Level 3 which is defined level for Competency Management. The said model deals with bringing improvements in the seven processes at level 3. The Maturity Level 3 Process Areas are:

• Competency Development

• Competency Analysis

• Work Group Development

• Participatory culture

• Competency Based Practices

• Career Development

• Workforce planning

The Company has initiated necessary action for the improvements in the said processes areas under PCMM Level - 3. A Transition Partner has been appointed to deliver ‘End to end process consulting (Definition and implementation), Training and Appraisal services for sustenance of PCMM level - 2 and Rollout of PCMM Maturity level – 3 Framework across the Company. A team of 39 official and 8 Appraisal Team members

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have been identified. The Roll out process will span over a period of 24 months.

Rewards and Recognition schemes

Following new Rewards and Recognition Schemes have been introduced for the employees to appreciate their efforts and recognize their performance.

• Monthly Recognition of Star Performance (In each Plant/Department): The Operations Managers (O.M.)/Head of the Department (H.O.D.) identifies Star Performer of the month in their respective Plant/Dept. and issues him/her Appreciation Letter. List of all the Star Performers is published in ‘RCF Darpan’.

• Behind the Scene Award (For organizing any event or for any particular Accomplishment)

• Good Health Award for the year: The HR Department has felicitated an employee in 26th January (Republic Day) Celebration Programme each year. The main criteria for the award is as follows:

• Eligibility: The age of the employee should be above 50 years

• No leave on medical ground during last 5 years

• All medical reports normal as certified by RCF Doctors

• Extra efforts to maintain health such as participation in activities like Yoga, Pranayam, Walkathon or any other physical exercise etc. based on records produced by employees such as certificates, membership details of Club/Classes.

• Best Mentor Award:HRD Department will identify Best Mentor on the basis of two criteria, namely, Ratings of the Mentee and Performance of the Mentee

• Manaviyata Puraskar: Manviyata Puraskar is given to an employee, who has contributed for any noble cause of helping poor / needy people / persons in distress in the Society. The nominations are based on efforts by the employee for life saving, assistance in case of fire/flood/earthquake/fatal accident etc., active participation in Go-green India, efforts/sponsorship by employee for child education etc.

• Pearl award for the year (for all Dy. General Mangers): A five members Committee consisting of EDs, decides the suitable criteria which may inter alia consider the following points for selecting an officer for Pearl Award. The criterial includes the following

• Sincerity and dedication

• Promotion of best working practices

• Ensuring Discipline

• Measures to introduce Productivity/Cost reduction

• Implementation of innovative practices

• Corporate Excellence Award for the year (for all GMs /CGMs): The Management Committee selects a GM/CGM for Corporate Excellence Award. The selected GM/CGM is felicitated in 26th January (Republic Day) Celebration Programme each year.

Workers Education Scheme

Workers Education Classes are conducted every year to educate the workers about their rights, responsibilities towards job and organisation. Minimum 40 employees per year are educated through the classes (Trombay Unit and Thal Unit separately) on various topics such as Labour Laws, Social Security Schemes, Health, Safety, etc.

Long Service Award

The employees from Trombay, Thal and Marketing, completing 25 years of service are felicitated along with their spouses in a separate function. A Silver Plaque and a Long Service Certificate are awarded to the employee and a Silver Coin is presented to the Spouse of the employee on this occasion.

RCF-HBL Interest Subsidy Scheme

RCF- HBL Interest Subsidy Scheme has come into effect in RCF in the year 2000 wherein subsidy on the interest rate is given to the employees who avail HBL from the outside financial agency. Difference in interest rate above 5.5% is paid as subsidy amount to the concerned employee to be reimbursed at the close of the financial year. The principal HBL amount considered for Interest Subsidy has been enhanced to `10 lakhs irrespective of location of House Property. All the confirmed employees who have not availed RCF HBL and have completed 6 years of regular service are eligible under the scheme.

Leave Bank Scheme

The company recognizes that in case of employees suffering from serious and prolonged illness preventing them from performing their duties for extended periods, such employees may not have sufficient accrued leave to cover such absences. To minimize economic hardship in these situations, the company has established the Leave Bank Scheme w.e.f. 1st February, 2012. The salient features of the scheme are as follows

• An employee becomes eligible for membership in the Leave Bank Scheme after he/ she completes 1 year of service on the permanent post and he/ she volunteers for donation of commuted sick leave, is a member of the scheme.

• One day of commuted sick leave will be deducted from each of the eligible employee, who have not

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opted out the scheme and credited in the Leave Bank. Thereafter, on exhaustion of the leave from the Leave Bank, the same will be replenished by deducting one day of commuted sick leave from each of the eligible employee.

• An employee would be considered for receiving the benefit of the scheme, if he/ she Has exhausted all available leave to his/ her account

RCF Death Benevolent Scheme (RCF DB)

RCF Death Benevolent Scheme came into force w.e.f. 1.4.2003. All the regular employees of the company are the members of the scheme. Whenever any employee dies, `10/- will be deducted from the salary of all the regular employees on roll as contribution and the amount so collected will be paid to the next of kin of the deceased as nominated for the purpose of his Provident Fund nomination.

Baggage Insurance

The Company has taken a Baggage All Risk Insurance Policy in the interest of employees while on official tour. Under this policy, accompanied baggage of any RCF employee while traveling in the course of official duty, is covered against loss upto ̀ 10000/-. This covers the loss of or damage to property insured caused by fire, riot and strike, terrorist activity, theft or accident from any fortuitous cause any time during the period of insurance.

The motivation of our employees are immensely helpful for our growth. At RCF, we are committed to ensure our best to become one of the leading chemicals and fertilizers company in the country. We believe that to ensure consistent performance from our employees we need to continually build competencies and ensure safe working conditions. This year we have formulated HR policies in the following fields:

Gender Inclusivity

• Set up of a new Forum for Women in Public Sector (WIPS) which aims to empower women and provide a platform to share issues and grievances. More information on the committee is given in the table below:

Name of the member Designation Position in the forum

Dr. (Ms.) Vineeta B. Rao Dy. Gen. Manager (Med.) Chairperson

Ms. Nanda Kulkarni Chief Manager (HR)-Corp. Convener

Ms. Sangita Gaikwad Manager (Civil) Member

Ms. Rupali Wadhawani Manager (HRD) Member

Ms. Alpana Bhivare Sr. Steno Asst.(HRD-Thal) Member

Ms. Dhanashree Puranik Chemist Gr. II (C. C. Lab.) Member

Dr. (Ms.) Archana P. Kale Manager (R&D) Member

• Policies on Gender equality and Zero tolerance against Sexual Harassment at work place have been set up to create a more inclusive environment.In accordance to this, RCF has an Internal Complaint Committee (RCF ICC) has been constituted as per Section 21(1) of the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013) consisting of the following members.

• A gender budget is allocated specifically to attend to gender sensitive issues.

• Blog writing for both the gender and a separate portal has been created on Company’s intranet.

We believe in gender inclusivity and equality, and there is no gender based discrimination in any form that is practised within the premises of RCF, and no such incidences have been reported. The employee remuneration is dependent upon employee grade, and is the same for both men and women.

Child care leaves

RCF has increased the period of maternity leave to a maximum of 180- days. A paternity leave of maximum 15 days has also been introduced in 2015-16. In addition to this, MTP (Medical Termination of Pregnancy) /miscarriage leave has been enhanced to 45 days. Child Adoption leave has also been introduced in FY 2015-16.

The child care leaves and maternity leaves are extended to all our employees. The total number of male employees who took parental leave was 12, and all 12 of them returned to work after the parental leave and also were with RCF 12 months after they returned to work from their leave. The total number of female employees who took parental leave was 10, and 10 of them returned to work after the parental leave and also were with RCF 12 months after they returned to work from their leave

Efficiency improvement

• Through Managerial Training Programmes, employees are getting various inputs on how to improve health, training in Yoga, Stress

Name of the member Designation Position in the forum

Dr. (Ms.) Vineeta B. Rao

Dy. Gen. Manager (Med.)

Chairperson

Mr. Vikram K. Jawale OM(Suphala) Member

Ms. Nanda KulkarniChief Manager (HR)-Corp.

Convener

Ms. Alpana BhivareSr. Steno Asst. (HRD-Thal)

Representatives of Thal

External member(Lawyer appointed by Mgmt.)

Third Party Member

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Management, improvement in work life balance etc. which has significant impact on increasing overall efficiency of the employees.

• Feedback reveal meeting of the employees retiring every month is organized in which employees along with their family members are invited for a small get-together by HR Department. Feedback Reveal Committee chaired by ED(HR) interacts with them. Their feedback/valuable suggestions are recorded for further needful action.

Recruitment related policies

• A dedicated email address is communicated to all the applicants for correspondence and queries.

• A dedicated Phone number is also communicated to all the applicants in case of queries.

• On-line application procedure has been introduced.

• A Welcome–Kit is being provided to the new entrant on the first day of joining.

Talent Retention Measures

• Field Induction Training to the new recruits

• Appointment of a Mentor to each new entrant

• Training Programmes for Skill Development including Soft/ Managerial skills

• Rectification measures based on the analysis of exit interviews

• Performance Improvement Plan and performance Feedback

100 % of our employees receive regular feedback on performance review and career development.

Our Workforce

As on 31st March 2016, total strength of our employees was 3772 comprising of 3510 male employees and 262 female employees. Out of these, 161 male employees belong to the minority group and 12 female employees belong to the minority group. The age-wise distribution of employees at RCF is shown in the infographic below:

The workforce according to gender and management level for the past 3 years is given in the table below:

In the year 2015-16, the employee turnover has remained almost the same since last year. The contract workforce is need based. The number varies depending upon the actual activities undertaken at different times in the year. The employee turnover trend according to age and gender for the past 3 years is given in the table below:

The employees hired in FY 2015-16 according to gender and age is given in the table below:

Our Senior management is appointed by Department of Public Enterprise (DPE), Govt. of India.

Age-wise Employee distribution

Age: <30 years Age: <30-50 years Age: <50 years

Workforce by level Gender 2013-14

2014-15

2015-16

Permanent Employees

Senior Management

Male 81 80 80

Female 1 2 4

Middle Management

Male 839 834 838

Female 60 61 57

Junior Management

Male 490 519 646

Female 55 78 83

Non-officer staff

Male 2350 2246 1946

Female 163 136 118

Contract workers

Supervisors

Male 70 69 67

Female 0 0 0

Workers

Male 1050 1041 999

Female 130 127 121

Employee Turnover (on account of dismissal, resignation, retirement or

death)2013-14 2014-15 2015-16

GenderMale 196 208 201

Female 16 11 17

Age-group

<30 years 21 10 14

30-50 years 20 6 11

>50 years 171 203 193

Employee Hires 2013-14 2014-15 2015-16

GenderMale 153 121 24

Female 22 10 2

Age-group

<30 years 156 119 23

30-50 years 19 12 2

>50 years 0 0 1

1939 1469

364

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Training and Development

RCF ensures employees are continuously learning and contributing towards RCF’s excellence through continuous training and development initiatives. To facilitate this further, theHRD department has established Training Institute and Corporate Management Development Centre (CMDC). The training institute, which is called the Learning Institute, comprises of a two storey building with six learning halls and an Assembly Hall accommodating 165 learners. The main objective of CMDC is to develop and strengthen managerial and behavioural competencies of the employees by promoting employee participation. At the time systematic development of leadership and technical expertise through internal and external training is also ensured. Based on Training Need Analysis and review of organizational goals, training programmes are conducted for all employees from top management to shop-floor employees across all functions of the organization. For this purpose, there are three conference halls and a computer lab. With the continuous up-gradation procedure, the training institute is now a fully-equipped resource centre.

Training Programs, viz. “Effective Personal Leadership” and “Effective Personal Productivity” by Leadership Management International (LMI) under “Leadership Development Program” are conducted for Top Managers. Advanced Modular Training programmes are conducted for Finance, Materials, Marketing, IT, HR-HRD, R&D, Civil and Medical departments employees for in-depth professional inputs. Employee Involvement programs like Quality Circles, Kaizen, Six Sigma, Five S, Lean Quality Circles, etc. are also organized on regular basis.Other programs like Women Empowerment at Workplace, Role of Women in Society, Superannuation planning, Financial Literacy, Emotional Intelligence, Inner Well-Being, Yoga, etc. are organized.Considering age related health issues of employees, HRD has designed a health management program for employees. To achieve work-life balance, programs like Effective Parenting, Family Enrichment Programme, Self-Management & Inspiration, leadership, Siddhi Samadhi Yoga, etc. are organized. RCF facilitates Industry-Academia interface to students from institutes like Tata Institute of Social Science, Indian Society for Training & Development, etc., through various programs. Such programs are aimed to breach the gap in knowledge and skills by providing hands-on experience of conducti ng Training and Development programs. It also includes conducting surveys and analysis for Human Resource Information Systems. We also conduct training on anti-corruption, and a total of 300 employees have received training on anti-corruption. The percentage of management employees who have received anti-corruption training is 18.11, and the percentage of non-management

employees who have received anti-corruption training is 1.37.

Transition assistance is provided to facilitate continued employability and management of career endings due to retirement or termination of employment. The Retirement Planning Workshop of four days duration is conducted for Retiring employees, which includes following topics

• “Sankraman” - Transition in Life

• Stress Management

• Financial Management

• Medical Policy after Retirement

• Facing the Change in Life

Also, The Senior citizen card is issued to the Retiring employee to avail the various Government facilities.

Other training programs conducted by HRD Department of RCF are as follows:

• Mentoring skills for the Senior Executives

• Self-Management and Inspirational Leadership (SMILE) program

• Inspiring talks of social workers and social activists such as Ms Sindhutai Sapkal

• Learning courses on culinary skills for marketing officials posted in rural areas.

• For making effective financial decisions and choices, learning programmes on ‘Enhancing Financial Literacy’ are organized.

RCF has also partnered with several entities for training. Some of these entities include Honeywell Automation India Ltd., Pune, IRS Informatics India Pvt. Ltd. etc.

The information on average training hours for the past three years is mentioned in the graph below:

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Suggestion Schemes

RCF is one of the first companies which implemented Suggestion Schemes. This scheme was introduced in RCF in 1965. Main objective of this scheme is to utilize the creativity of individuals through suggestions. In other words, this serves as a forum which promotes employee’s intellectual contribution in the management process. The Suggestion Scheme in RCF is not confined to any particular area but encompasses different ideas which help the organization from wastage reduction to conservation of resources, pollution control, efficiency improvement and every other aspect which improves quality of life of our esteemed employees. RCF is also a corporate member of Indian National Suggestion Scheme Association (INSSAN) which is the umbrella organization for suggestion schemes in Indian Industry.

Quality Circles

RCF also has large number of Quality Circles each having a small group consisting of concerned personnel associated with a particular function for problem solving. The group aims at identifying all the associated problems. Its systematic analysis involves using problem solving tools and techniques of Quality Circle so as to reach to the root cause of the problem and finding out probable solutions, selection of an ultimate one and working out the action plan for implementation of the solution in order that the function is performed to the possible perfection. RCF has always been on the forefront for taking various productivity improvement measures.

In line with our journey towards achieving excellence, improving operational effectiveness and service level, employees have been trained on Six Sigma Methodology since 2011-12. Details of Six Sigma training provided to employees at Trombay Unit during last three years is as follows:

There are 12 Six Sigma green belt teams and 6 Six Sigma black belt teams at Trombay Unit and they have initiated/completed 12 Green Belt and 6 Black Belt Projects. Black Belt level training has been imparted to 24 employees and 6 black belt projects have been initiated during 2015-16.

Details of Six Sigma Green Belt level training provided to employees at Thal Unit during last three years is as follows:

There are 37 Six Sigma green belt teams at Thal unit and they have initiated/completed 37 Green Belt Projects.

Average Training Hours

0

10

20

30

40

50

60

70

80

90

100

61

5550

0 0

3933

25

16 18

70

80

6867 6660

74

86

31

22

39

49 47

81

Male FemaleSenior Management

Male FemaleMiddle Management

Male FemaleJunior Management

Male FemaleWorkers

2013-14 2014-15 2015-16

2013-14 2014-15 2015-16

No. of employees trained

(through Green Belt & Black

Belt) at Trombay Unit

21 44 48

2013-14 2014-15 2015-16

No. of employees trained

(through green belt) at Thal

Unit

16 25 41

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Six Sigma has been instrumental in solving real life problems. The company’s vision and mission is transpired to every single employee in the company. Therefore, every employee knows the part they play in achieving the company’s goals.

Labour Relations

Employees in officer cadre, who constitute about 45.28% of total employee strength, have informal channel of Officers Association for periodic interaction with Management for suggestions and improvements. Employees in worker cadre, who constitute balance 54.72% of total employee strength, are free to form unions. We have collective bargaining agreement with recognized unions. As per Sec 9A of the Industrial Disputes Act, 1947, a 21-day notice period is prescribed for effecting any significant operational changes. However, we consult with the recognized trade union at appropriate forums before making any changes that may affect operational activities. Health and safety topics concerning employees are also discussed in a free and frank manner during these engagements. Trade unions are free to provide their feedback on any health and safety issue pertaining to RCF operations.

Human Rights

Being a PSU, we at RCF follow all the legal requirements and principles applicable in the country. Our policies are suitably designed based on the human right principles as per the Human Right Act, 1993 (with amendment act, 2006), the Constitution of India and labour laws. No child labour or forced or compulsory labour is engaged either by RCF or by contractors working within the boundary of the plants. For regular employees, date of birth of candidates is verified during recruitment process. For contractors, clause for no child labour is included in agreements. Our security persons take precautions not to allow child labour at work. All our business agreements contain stipulations for Prohibition of engagement of child labour, payment of minimum wages, and compliance with other labour laws. 100% of our security personnel are trained in RCF’s policies concerning Human rights. Training on policies and procedures concerning aspects of human rights is an important part of our training schedule. Our employees received 4072 man-hours of training in FY 2015-16. In all, 12.86% of our total workforce received training on human rights. RCF has got security provided by Central Industrial Security Force (CISF), which has its own set-up to provide training to its staff. In addition to above RCF provide training to CISF personnel on Safety, Emergency Control Plan, storage hazards, etc. No incident of discrimination on grounds of race, colour, gender, religion, political opinion, national extraction or social origin has been reported during the year. 100%

of our operations have been subject to human rights assessments

Employee Health & Safety

As per Section 41G of Factories Act, 1948 & Rule 73 J of the Maharashtra Factories Rules, 1963, Plant Level Safety Committees are formed at both Trombay and Thal locations. The meetings are carried out bi-monthly. At least one worker from each department of the Plant is nominated on the committee. Various points related to health & safety of the employees and the work environment in which they are working are discussed by the committee. Depending upon the magnitude of the points, they are also discussed in Central Safety Committee Meeting and Corporate Safety Committee Meetings (both are carried out quarterly). At our Trombay location, there are 18 plant level safety committees and at Thal location, there are 8 plant level safety committees. These health and safety committees represent 100% of our employees. We have strict guidelines for ensuring safety within our operations. At both the units, there has been no fatal accident or reported case of occupational diseases for our permanent employees in past three years. Injury rate during 2015-16 for our workforce at Trombay and Thal plant is 0.027 and 0.032respectively. Whereas lost day rate during 2015-16 for our Trombay plant was 3.85 and 0.032 at our Thal Plant. The Lost days for permanent employees has increased at Trombay from 0 in 2014-15 to 79 in 2015-16 because of burn injury sustained by an employee due to steam. This has resulted in higher lost day rate as compared to previous year.

Safety training for contract laborers

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Visitors are given safety instruction cards upon arrival inside the campus, a snapshot of which is provided below:

For incentivizing our employees to follow safety procedures, we reward through a unique award called ‘Safety Person of the month’:

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Employee type Health & Safety metrics2013-15 2014-15 2015-16

Male Female Male Female Male Female

Permanent

Employees

Near miss cases 318 2 656 5 528 13

Non-fatal accidents 0 0 0 0 1 0

Fatal Accidents 0 0 0 0 0 0

Occupational Diseases cases 0 0 0 0 0 0

Lost Days 0 0 0 0 79 0

Total No. of manhours worked 5198160 95,040 4524960 145200 4142160 142560

Contract

workers

Near miss cases 0 0 0 0 0 0

Non-fatal accidents 0 0 0 0 1 0

Fatal Accidents 0 0 1 0 0 0

Occupational Diseases cases 0 0 0 0 0 0

Lost Days 0 0 6000 0 66 0

Total No. of manhours worked 2827440 264000 3086160 290400 2970000 271920

Injury Rate 0 0.02 0.027

Lost Days Rate 0 149.13 3.85

Employee type Health & Safety metrics2013-15 2014-15 2015-16

Male Female Male Female Male Female

Permanent

Employees

Near miss cases 263 2 656 5 528 13

Non-fatal accidents 20 0 0 0 1 0

Fatal Accidents 0 0 0 0 0 0

Occupational Diseases cases 0 0 0 0 0

Lost Days 545 0 0 0 1 0

Total No. of manhours worked 3384640 134,400 3174080 134400 3113600 116480

Contract

workers

Near miss cases 5 0 3 0 5 0

Non-fatal accidents 1 0 0 0 0 0

Fatal Accidents 0 0 0 0 0 0

Occupational Diseases cases 0 0 0 0 0 0

Lost Days 136 0 6000 0 66 0

Total No. of manhours worked 2932160 116480 2929920 132160 2869440 138879

Injury Rate 0.12 0 0.032

Lost Days Rate 20.74 0 0.032

The figures for ‘injury rates’ and ‘lost days’ are given in the table below. These rates have been calculated based on 200,000 man-hours. The tables below gives the details of injury rate and lost days rate for Trombay and Thal units respectively:

Trombay Unit:

Thal Unit:

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Emergency planning at RCF locations

We have an elaborate emergency handling plan in place covering fire, leakage, explosion, electrical fire etc. at various plants with training to handle such emergencies. Each plant has a HIRA Matrix. Above mentioned scenarios are identified and hazard associated with it are listed. Against each risk-control measures are also documented. In the HIRA matrix fire due to Gas, flammable liquids, flammable solids are listed. (IMS/HIRA all plants). HIRA matrix also contains leakage hazard fire due to Gas, Flammable liquids, flammable solids are listed. (e.g. IMS/HIRA, Ammonia-V, IMS/HIRA Methanol)

HIRA matrix has identified fire due to electrical spark as well. We have prepared a similar HIRA matrix for non-manufacturing areas as well. Briefing to visitors and training to security staff for handling emergency is given. Safety posters are displayed in all over the factory, Plants and roadsand safety briefing to drivers is give at product loading point. Incorporating all these points, mock drills are conducted on a regular basis to ensure exposure to real life emergency scenarios

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Community Welfare

RCF cares about the communities impacted by its processes. RCF aims to maintain a shared value relationship, ensuring a win-win situation for all. An inclusive growth strategy has been outlined by the company: Identifying the needs and type of intervention, identifying partners, on ground integration. A snapshot of our projects, the developmental areas being addressed by those projects, their respective locations and expenditures are given in the table below:

Sr. No. CSR Projects/Activities Identified

Sector in which Project is covered Locations Districts (State)

Cumulative Expenditure up to the reporting Period (`lakh)

1 Adoption of villages Rural Welfare & Community development

District Ahmednagar & Vardha (Maharashtra)

33.10

2Maintaining quality of Soil, Air and water

Jalyukta Shivar Abhiyan Marathwada Area of Maharashtra 75.00

3Supply of safe drinking water to nearby villages of Thal

Rural Welfare & Community development

Thal, Vaishet, Tudal, Boris, Gunjis, Navgaon, Bhal District Raigad (Maharashtra)

69.59

4Supply of paddy, fruits sapling and free fertilizers to nearby villages of Thal

Livelihood enhancement projects

Thal, District Raigad 9.73

5

Supply and distribution of Mid-day meal to 6000 children of various unaided schools

Promoting Education

Vishnu Nagar,Gadkari Khadan, Nagababa Nagar, Panjarpol, Khadi Machine, Azad Nagar, Bharat Nagar, Shankar Deul, VashiGaon, Vadvali Gaon, Dosti Acres and adjoining areas of Trombay, Mumbai (Maharashtra)

237.67

6

RCF Super-30 vocational training to 30 selected students appearing for IIT and NIT entrance tests for admission in top Engineering colleges

Reducing inequalities faced by Socially and Economically backward groups

Students from various Districts in Maharashtra districts were given training under this initiative.

72.60

7

Running of 6 centres for children for providing training about moral, ethical, human and health values

Promoting Education

Vishnu Nagar, Gadkari Khan, Nagababa Nagar, Panjarpol, Khadi Machine, Azad Nagar, Bharat Nagar, Shankar Deul, Vashi Gaon, Vadvali Gaon, Dosti Acres and adjoining areas of Trombay, Mumbai (Maharashtra)

17.50

8Providing medical facilities through Mobile Medical Van

Health and Family welfare

Vishnu Nagar,Gadkari Khadan, Nagababa Nagar, Panjarpol, Khadi Machine, Azad Nagar, Bharat Nagar, Shankar Deul, VashiGaon, Vadvali Gaon, Dosti Acres and adjoining areas of Trombay, and villages of Thal-District Raigadh and Mumbai (Maharashtra)

134.23

9

Distribution of free Sanitary napkins to female population of slums of chembur and villages of Thal

Health and Family welfare

Vishnu Nagar,Gadkari Khadan, Nagababa Nagar, Panjarpol,Khadi Machine, Azad Nagar, Bharat Nagar, Shankar Deul, VashiGaon,Vadvali Gaon, Dosti Acres and adjoining areas of Trombay, and villages of Thal- District Raigadh and Mumbai (Maharashtra)

10.57

10

Providing scholarship to SC/ST students of tribal villages for education in annual batches of 10 from 6th, till they reach 12th std.

Reducing inequalities faced by Socially and Economically backward groups and promoting education

Shivaji Military School at Pune. However SC/ST students from all districts of Maharashtra get the benefit.

40.48

11

Providing 5 Bio Toilets in Schools where Mid-day Meal Scheme is operational in Chembur area

Maintaining quality of Soil Air and water

Chembur, Mumbai 12.60

53

Sr. No. CSR Projects/Activities Identified

Sector in which Project is covered Locations Districts (State)

Cumulative Expenditure up to the reporting Period (`lakh)

12

Installation of Bio Toilets near gate no – 2 of factory for Truck Drivers and cleaners through Wockhardt Foundation

Maintaining quality of Soil Air and water

Chembur, Mumbai 8.56

13

Running of Pathology lab in Chembur near RCF township Gate no 2 approx 15000 patients are getting benefit of this scheme

Promoting Health care including preventive health care

Chembur, Mumbai 21.53

14Medical camps in slums of Vashi Naka and Cheetah camp

Promoting Health care including preventive health care

Chembur, Mumbai 5.00

15Holding of health camps in flood affected area of TamilNadu

Promoting Health care including preventive health care

Flood affected area of Chennai Tamilnadu

25.00

16

Study of impact of Water cess on the industries of Maharashtra and Tamilnadu.Whether it should be used as penal instrument

Maintaining quality of Soil Air and water

Industries of Maharashtra and Tamilnadu.

4.00

17

Seven eye + health camps in slums of Vashi Naka and Cheetah camp thru Warior Foundation

Promoting Health care including preventive health care

Chembur Mumbai 6.00

18Financial Assistance to Chembur Citizen Forum for holding health camp.

Maintaining quality of Soil Air and water

Chembur Mumbai 7.50

19Contribution to NFCH (National Foundation for Communal Harmony)

Promoting Health care including preventive health care

Delhi 2.00

20

Financial assistance to Sushrut Hospital for treatment of underprivileged people free of cost with medicines

Promoting Health care including preventive health care

Chembur Mumbai 15.00

21

Construction of 100 Toilets at SansadAdarsh Gram Yojana at village Shahid @ 20000/- per toilet + wash basin

Maintaining quality of Soil Air and water

Dist-Amravati 24.90

22

Holding of farmers Training for Jatrofa plantation for 50 farmers per village for 20 villages. Total of 1000 farmers in UP

Livelihood enhancement projects

Gaya District, Bihar 9.93

23

Rejuvenation of Storm drainage system from Radhapuram to stadium stand in Pallakad Approval obtained and MOU signed in 2015-16 payment of `6 lakhs is done.

Maintaining quality of Soil Air and water

Pallakad, Radhapuraam Dist Keral 6.00

24

Supply of material to LokmanyaShikshan Mandal Choundi for construction of school floor (Thal)

Promoting Education Thal Dist Raigad , Maharashtra 20.00

25 Rural Development ProjectsRepair of culvert near Ghondhalpada

Dist Raigad, Maharashtra 9.32

26Holding of Kabbadi Tournament in Thal

Promoting Rural Sports Dist Raigad, Maharashtra 17.64

54

Sr. No. CSR Projects/Activities Identified

Sector in which Project is covered Locations Districts (State)

Cumulative Expenditure up to the reporting Period (`lakh)

27

Promoting and monitoring differently abled children for one year with special course at Chennai

Livelihood enhancement projects

Chennai, Tamilnadu 10.44

28

Construction of first floor for disabled friendly Residential School in Bangalore

Promoting Education Bangalore, Karnataka 25.00

29Maintenance of Acharya garden, Chembur

Maintaining quality of Soil Air and water

Chembur, Mumbai 18.60

30Help to Jawahar Vidya school-run by Lokmanya Shikshan Sanstha

Promoting Education Chembur ,Mumbai 1.50

31Repairs to Sawitribai Phule School

Promoting Education Chembur, Mumbai 1.18

32

Printing of crop Literature and is distributing it free of cost to farmers. Literatures gives information regarding right dosages at right time to right crop etc. which helps farmers to make optimum use of scarce resources like water, fertilizer,seeds pesticides etc.

Reducing inequalities faced by Socially and Economically backward groups

Rural area at Districts of Maharashtra 13.55

TOTAL 965.72

Some of the more prominent initiatives that have been carried out by RCF have been provided below

IRDP Village Adoption Program

RCF believes in holistic development of a village. RCF has taken responsibility of empowering farmers so that their economic conditions can be enriched. 5-10 villages have been adopted in year 2015-2016 from different states. A variety of activities were conducted in these villages in order to make them socially, environmentally and economically sustainable, some of which have been stated below

• Construction of a Community Hall

• Provision of drinking water facilities

• Provision of lift irrigation facilities

• Shelter for small and marginal farmers

• Water shed development programmes

• Financial help for self-help groups

• Setting up of medical camps

• Setting up of veterinary camps

• Setting up of vaccination camps

School Program

RCF identified the need for quality education in Thal, back in 1984 with the establishment of the Thal operations. A needs assessment report indicated the

requirement for education at the primary level for the children in the villages. Subsequently a secondary, higher secondary school and a Junior college was constructed in the Raigad District of Thal.

The school is run by Deccan Education society, Pune and financially supported by RCF. Infrastructure, Educational material, teacher’s salaries and other expenditure pertaining to the smooth functioning of the school are undertaken by RCF.

Nearly 2,000 beneficiaries have been privy to this school. The school imparts education from Nursery to 12th standard in both English as well as Marathi medium. For 11thand 12thstandard vocational education facility has been provided in computer science as well as in Electronics. The school is well equipped with infrastructures like laboratory, library etc.

Mid-Day Meal Scheme

Adequate nutrition is necessary for efficient functioning of the grey cells. In this regard, RCF began aMid-Day Meal Scheme in non-government aided schools of Chembur. RCF has partnered with ISKCON, a Food Relief Foundation, as a supplier of nutritious and sumptuous meals to the children. The meal ideally comprises of fresh seasonal vegetables, cereals, made with local flavours. 6000 students have received meals through this scheme.

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An initial baseline study in the Government added and unaided schools revealed the lack of subsistence foods caused an increased rate of illness. The dropout rates were thus found to be relatively high. With the cause of the high dropout rate identified as the lack of nutritious food, RCF partnered with ISKON for the food supplies. Food reaches the respective schools half an hour before the school recess by means of a closed vehicle. ISKCON supplies the food in containers of 10 kg each and further distribution is undertaken by the school authorities to the children in the Tiffin boxes which are provided by RCF. RCF received positive feedback from parents about the quality and nutrition content of the food. As a result of the mid-day meal scheme, we observed lower rates of sickness and ultimately higher attendance rates.

Drinking water supply to the villages

In light with RCF’s nature of operations, the water table in the regions of operation tend toward depletion. To ensure water does not become a scarce resource, RCF provides drinking water to seven nearby villages ie Thal, Vaishet, Navgaon, Boris, Gunjis, Kurul and Kihim Colony. The maintenance of the water pipelines in the villages is also looked after by the Company. Around 16,000 residents of the villages avail this facility given by the Company. The drinking water supply for one household at Gunjis is shown in the picture below:

Road repairs of villages

Better Infrastructure is a sign of development. As a proponent of development, RCF has constructed asphalted roads in the villages adjacent to the Thal plant. These roads are straightway connected to Thal and Navgaon villages from the boundary wall of the Company. The Company does regular repairs of these roads as per the demand of Gram Panchayat. Company’s Civil Department takes initiative for this repair work. The residents of the Thal and Navgaon villages have sung praises of these roads as it has improved road safety. The road constructed at Navgaon is shown in the picture below:

Mobile Medical Van

A need assessment study in Thal, conducted by TISS on behalf of RCF showcased the lack of health facility for common ailments. To address this requirement RCF, in collaboration with Wockhardt Foundation, runs mobile medical van facility in the area. On an average 7 villages are covered in weekly cycles by a mobile van and patients are benefited from free medical services including supply of medicines. Through this facility, ailments like Blood pressure, Hemoglobin Levels, Oxygen saturation, Malaria hepatitis, Dengue, Typhoid, Diabetes etc., are treated on regular basis. The Medical Van is accompanied with one MBBS doctor, one assistant and a Driver. It is equipped with GPS system to enable RCF to track it on real time basis. One medical van attends to approximately 25,000 patients per annum across 25 villages. M/s Wockhardt Foundation is also engaged in the running of Pathology lab in Chembur near RCF township. Nearly over 3000 patients have been benefited by this scheme. RCF has also engaged Wockhardt Foundation for extending the medical services for enhancement of female hygiene by free distribution of sanitary napkins (Moksha) through mobile Medical Vans. The efforts in rendering novel services to females of slums are well appreciated.

We have also conducted blood donation drives and free medical and eye check-up camps for school children this year.

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Distribution of sanitary napkins

Women up-liftment is a concept RCF truly believes in. To spread the message of hygiene, RCF has partnered with Wockhardt Foundation for the distribution of Sanitary napkins in slums of Trombay and in Thal. There are four Mobile medical vans for distribution. This program has contributed greatly to up keeping the health and sanitation of women in the region. Nearly 80,000 women have been benefitted by this scheme in this year.

Installation of pathology Laboratory at Chembur

In addition to mobile medical vans, RCF has established a pathology laboratory in collaboration with Suphala Trust and Wockhardt Foundation in Chembur catering to the marginalized community. The laboratory will undertake various tests free of cost. 25,000 beneficiaries have undergone tests at the laboratory.

Khel Khel mein

“Khel Khel Mein” is an education program designed for under privileged children below the 7 years. RCF partnered with WOCKHARDT Foundation to support 1200 children from Vashi Naka and Chembur. 6 edu-recreation centres with special focus on parallel learning were set up for this purpose. A typical session, held 5 days a week, is for 2 hours in the community. 20 children come together in an open space under the guidance of a mentor. The program is designed to nurture 5 aspects a child’s upbringing:

• Joy: Making available toys and books, bringing in a sense of happiness and joy.

• Social Skills: Nurturing Social interactions, caring and bonding amongst one another

• Recreation: Educative and meaningful form of entertainment to instil creativity

• Learning: As an overall outcome through recreation

• Health: Physical health through free de-worming, check-ups and mental health by inculcating values and joy

RCF Super 30

Another unique program RCF has on-boarded is a leadership initiative to encourage 30 exceptional underprivileged students in the state of Maharashtra with 11 months of free residential coaching for admission in IIT/NIT and other premier engineering colleges in 2014-15 sessions. Their entire expenditure of lodging boarding education and infrastructure is funded by RCF.This program is conducted in partnership with Centre for Social responsibility and Leadership.

In its very first year out total of 31 students 29 students have cleared IIT mains and 16 students have cleared IIT Advanced. The final selection round saw 16 out of the 29 students to have cleared IIT Advanced ensuring a seat in IITs.

Contribution to Swachh Bharat Abhiyan

Against the backdrop of conservation of environment, and Swachh bharat Abhiyan with assistance of DRDO, ten bio toilets have been installed for scientific disposal of human waste. Truck drivers and mathadi workers are the prime beneficiaries impacted by these installations. We have also been conducting cleanliness drives in and around RCF locations with the help of our employees, and our employees have shown a very enthusiastic response towards the same.

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Scholarship to SC/ST students

RCF adopts 10-12 students from SC/ST categories in Thal and Trombay to encourage higher education between 5th Std. to 12th Std. for admission in Shri. Shivaji Preparatory Military School. This school has strong focus on education and physical fitness of the students, due to which they can further make career either by joining Military through NDA, CDS, SSB, or Merchant Navy etc.

There have been no identified incidents of violation involving rights of indigenous people surrounding our locations in FY 2015-16. Also, none of our operations have had any significant negative impact local communities in the reporting period.

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Our suppliers are integral to our operations and play an instrumental role in helping us deliver the best products. Hence, we endeavour to maintain a close relationship with our suppliers in an effort to ensure availability of raw materials, increase efficiency and reduce risk in our operations. This relationship is maintained by an open communication channel where engagement is undertaken through a variety of modes which have been detailed out in the stakeholder chapter. This assists in our ability to improve the quality, planning and timeliness of projects. We encourage our suppliers to operate sustainably and be environmentally and socially responsible. We promote small-scale suppliers through the implementation of the Public Procurement Policy for Micro Small and Medium Enterprises (MSMEs) which offers benefits such as waiver from tendering fee and EMD. RCF sources 24% of its supplies from MSMEs and out of total procurement from MSME Vendors, 0.38% is from MSMEs owned by scheduled caste or scheduled tribe entrepreneurs.We ensure fairness in the tender process by hosting tenders on our website, allowing anyone to participate in the tendering process without discriminating on basis of caste, gender, religion or region.

Supplier Screening

As mentioned earlier, we ensure that our suppliers are socially and environmentally responsible. To bring our suppliers on board with the idea, we regularly conduct awareness sessions with them. We have a formal process that applies to all our suppliers for ensuring their performance on environmental, labour & Human Rights related aspects. Before they associate with us, all our suppliers are required to provide commitments for compliance to the statutory and legal obligations related to environment, labour practices and Human Rights. These commitments ensure that the suppliers take preventive and corrective actions to maintain performance. In case of any non-conformity to our contractual terms, we initiate punitive action against the supplier, in severe cases this may result in termination of contract as well. The terms and conditions of our contracts cover all the legal and statutory compliance. We would be developing further screening mechanisms in the coming years to motivate our suppliers to go beyond the legal requirements and contribute positively towards environment and society. We are a staunch advocate of human rights and no grievances related to human rights were noted in the reporting period. Further, we do not allow child labour and prescribe a minimum age limit of 18 years for employment and contract labour. As per the contracts, our vendors must confirm

Our Supply Chain

that they do not undertake child labour.No significant actual and potential negative human rights impacts or on society have been identified in the supply chain. Also, no significant actual or potential negative impacts for labour practices were noticed in our supply chain.

Procurement expenditures

The manufacturing facilities of RCF are located in Trombay and Thal in Maharashtra. Hence the company considers the state of Maharashtra as the local area for procurement of raw materials and services. However, considering the nature of raw materials required for manufacture of fertilizers and industrial products, RCF has to procure its raw materials from outside Maharashtra and import as well.RCF however prefers locally based suppliers/ vendors for regular services which do not require specific skill sets. Selection of supplier/ vendor is mainly done through competitive bidding process and criteria for selection are documented in the tender guidelines used for bidding. The details of distribution of procurement budget as a percentage of total procurement budget is given below:

Nature of import 2013-14 2014-15 2015-16

Within Maharashtra (local) 52% 54% 67.5%

Outside Maharashtra 34% 28% 14.5%

Import 14% 18% 18%

RCF has also adopted the Integrity Pact for its suppliers. The Integrity Pact, duly signed by the authorized official of RCF and the Bidder, forms a part of the Tender/Bid Documents. Mr. R. K. Singh, Ex- CMD, BPCL, has been appointed as Independent External Monitor (IEM) to oversee the implementation of the Integrity Pact Program.

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Relationship with Customers

Based on the nature of RCF’s work, the implications on the society depend vastly on the engagement with Customers. Our customer base comprises of Farmers and dealers. RCF conducts various initiatives through the year to keep farmers apprised of the upcoming policies, best practices and awareness about the market condition to prevent them from getting duped.

Farmer-Dealer Assemblage

RCF has its presence in 20 agriculturally potential states in the country. RCF conducts regular meetings with farmer groups to educate them about the current trends in the fertilizer market, availability of market linkages, government policies, terms and conditions of the company, tie-ups with Fertilizer Control Order of the Government of India as Fertilizers are a part of the Essential Community Act.

The Farmer meetings are conducted at the village level. These meetings are organized on a regular basis to ensure farmers are up to speed with the latest upcoming. Crop and product related documents are shared. The meeting concludes with Question and Answer sessions with the subject matter experts from the company in addition to the representatives of the Agriculture department of the state. Any queries regarding agriculture are clarified at this time.

RCF also conducts dealer meetings or training programs across the country to obtain feedback about the usage of the products and any operational difficulties. Dealer groups are also apprised of the best practices in the Agricultural sector and the FCO guidelines.

Understanding Soil Health and demonstrations on Product & Method

Soil Testing is an essential step undertaken before the plantation of crops. It is recognized as a comprehensive systemic methodology that accesses the nutrient content present, which is available to the plants. To spread awareness about the importance of soil testing RCF organizes demonstrations in the farmers’ fields to test the health of the soil. These demonstrations are normally organized during soil sample collection or fertilizer application. The session is ideally attended by 60-70 farmers where queries relating to best techniques for soil testing, sample quantity required for testing soils, and any other pertaining to agriculture are resolved by agriculture experts, agricultural scientists and representatives from the Government. This year, RCF has organized thousands of soil tests, which are carried out in 13 static and 6 state of the art Mobile Soil Testing

Labs across the country. 140417 Soil Health Cards were distributed to the farmers under National project on soil health management during the year 2015-16.

A soil fertility status is prepared based on the soil analysis conducted. The status report indicates the proportion of available N, P in the form of P2O5, and K in the form of K2O along with a variety of micro nutrients which are essential indicators determining the type of crop to be grown.

Brochures and leaflets providing information about the product usage-dosage, time/method of application are distributed in addition to the soil testing and demonstrations. A handout or leaflets are distributed in the regional languages ensuring maximum retain-ability of the practices. Nearly 3 lakh brochures are distributed on an annual basis.

Soil Sample Analysis (Nos.)

NPK

101,826

130,826

123,177

2013-2014

2014-2015

2015-2016

Micro Nutrients

8,441

12,920

17,240

140,000

100,000

80,000

60,000

120,000

20,000

40,000

0

130,826

101,826

17,240

123,177

12,9208,441

Demonstrations and workshops on the various methods or products used for advanced agricultural techniques are conducted during field days/ soil testing days. These demonstrations are carried out in the farmers’ fields. RCF recommends farmers on application of fertilizers based on the results of soil testing, package of practices of important crops and other technical know-how. Field experts and subject matter experts are also invited for the demonstrations. RCF extends fertilizers at subsidized rates to the farmers during these demonstrations.

RCF has been a pioneer in establishing the uses of the three essential components NPK in states of Maharashtra, AP, UP, Tamil Nadu, Gujarat, MP, Karnataka and West Bengal. RCF has conducted workshops successfully for nearly 30 years’ now and have observed an eagerness and a willingness to be a part of the demonstrations from the farmer groups.

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Activity Summary

ProductDemonstrations

ProductDemonstrations

Method Demonstrations

50 100 150 200 250 300 350 400 4500

2015-2016

2014-2015

2013-2014

65

62

114

376

390

292

Method Demonstrations

Customer Centric Activity (Nos.)

1000

800

700

600

900

400

500

300

200

100

0Dealer Meeting/

Training

40

40

82

Farmer Meetings

446

446

948

2013-2014

2014-2015

2015-2016

Soil Testing Days

208

208

303

Farmer Training Centre

Farmer training and research centres are designed specifically for farmers with special courses designed for women farmers and the Scheduled castes and Scheduled tribes. These training centres are established to encourage students to take up courses and certifications in agriculture. RCF currently has 2 centres located in Nagpur (Maharashtra) and Thal (Raigad District, Maharashtra). The centres are equipped with state of the art audio visual systems, laboratories for soil analysis, libraries with a vast variety of books in regional language and English and hostel facilities for trainee farmers.

The centre covers aspects of farm management, farm technology in accordance with the type of soil condition and climate of the region. Topics on food processing are also provided as a part of the course. Courses are conducted by eminent and qualified faculty aided by visiting faculty from renowned agricultural institutions. Field visits to research centres, agricultural institutes and subsidiary occupation centres are also organized

as a part of this program. The program lasts for either a day or three days. A three-day program comprises a batch of 30 farmers. During the year 2015-16, in all 126 programs were organized at both of our FTCs providing training to 6352 farmers (through One day & Three days training programs).

Impacts of the Farmer Training Course

RCF aims to reach out to as many farmers as possible but with the scope, RCF reached out to 6352 farmers. Post training, RCF conducts tests for gauge the extent of awareness of the farmers.

Literature: Sheti Patrika

RCF publishes a monthly farm magazine named ‘Sheti Patrika’, distributed to the farming community of Maharashtra. The Sheti Patrika, in circulation for the past 45 years has now reached readership of over One lakh and Fifty thousand farmers. RCF takes utmost care to cover latest and current topics in Agriculture in Sheti Patrika. At present RCF is Printing and Distributing 66,000 copies per month on complimentary basis to the farmers. The Patrika has an Author bank of 85 Eminent Agricultural Scientists and Agro experts from Maharashtra. The 2nd interactive meet with 35 top Agricultural Scientists and Agro Experts from Maharashtra was organized in Thal on November 23, 2014. Most of these eminent personalities have been contributing with their articles for RCF Sheti Patrika for the last 40 years.

Framer guides aid the budding farmers in dosage, time/ method of application etc. which is distributed free of cost, across the country. This year, 3lakh Farmer’s Guides were disseminated in different languages.

‘RCF Kisan Manch’ - a social media platform of RCF on facebook aims at educating farmers on scientific agricultural practices. So far we have over 5000 dedicated likes and more than 80 lakhsvisitorson ‘RCF Kisan Much’.

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Activity 2013-14 2014-15 2015-16

Farmer Guides 3.00 3.00 3.00

Sheti Patrika 0.60 0.66 0.66

Product and Crop Literature 3.83 3.31 6.66

Additionally, RCF has sponsored ‘Krishi Samrudhi chi Guru Killi’, a 10-minute capsule for information dissemination to farmers. One episode per week was telecastedfor 52 weeks every Tuesday, and a repeat showwas done every Sunday for 52 weeks as part of ‘‘Amchi Mati Amchi Mansa’’ telecasted on Sahyadri (Doordarshan). The show had commenced on 07.04.2015, and concluded on 29.03.2016. In-house, RCF has produced a Farmer Educative film called “SRT Bhat Sheti”. This short film showcases a revolutionary rice growing technique introduced by noted farmer Shri. Chandrashekhar Hari Bhadsavle, of Karjat Taluka, Raigad District, Maharashtra. Shri. Chandrashekhar Hari Bhadsavle is a recipient of the prestigious “Krishi Bhushan Award” conferred by the Govt. of Maharashtra, in 1998. This Film was screened in the 14th Mumbai International Film Festival, Mumbai.

Krishi Melas and Agricultural Exhibitions

Krishi melas are conducted at jointly with the Zilla Parishads, Agriculture Departments, Sugar factories, Agricultural Universities etc in regions where cash crops are cultivated. Melas are conducted with the intent of raising awareness about the Company’s fertilizer products and different packages of practices followed in various crops.

Agricultural Exhibitions are fairs carried out at block or district levels. These exhibitions are held specific to the area and type of crop grown in the area. As a result of the positive response received from the farmers, RCF continues to host exhibitions displaying information about Agricultural technology, benefits and importance of soil testing, etc.

Kisan Care Toll Free Number

RCF explores a variety of options to ensure farmer queries are sought out to. RCF established a Toll free helpline number, active 24/7. Farmers can seek advice on Cultivation, Press related information, Technology, Weather report, Soil Testing, Mandi rates etc. The toll free helpline number ‘1800-22-3044’ provides instant advice, thereby solving queries on the go.During the year 2015-16, we have received 15227 calls on our toll free helpline no.

Krishi Mela and Exhibitions (Nos.)

Krishi Mela

58

63

94

2013-2014

2014-2015

2015-2016

Exhibitions

74

53

72

100

80

70

60

90

40

50

30

20

10

0

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GRI Content Index

General Standard Disclosures

General Standard Disclosures Chapter Mapping Status of Reporting

Section: Strategy & Analysis

G4-1 From CMD’s Desk – Page 3-4 Fully Reported

G4-2 Corporate Governance and Risk Management – Page 14; Annual Report Fully Reported

Section: Organizational Profile

G4-3 About RCF – Page 6 Fully Reported

G4-4 About RCF – Page 6 Fully Reported

G4-5 About RCF – Page 6 Fully Reported

G4-6 About RCF – Page 6 Fully Reported

G4-7 About RCF – Page 7 Fully Reported

G4-8 About RCF – Page 7 Fully Reported

G4-9 About RCF – Page 7 Fully Reported

G4-10 Employee Management and Labour Relations- Our Workforce – Page 45 Fully Reported

G4-11 Employee Management and Labour Relations – Page 48 Fully Reported

G4-12 About RCF – Page 7 Fully Reported

G4-13 NA Fully Reported

G4-14 Corporate Governance and Risk Management – Page 13 to 17 Fully Reported

G4-15 Corporate Governance and Risk Management – Page 17 Fully Reported

G4-16 Stakeholder engagement &Materiality Assessment – Page 22 Fully Reported

Section: Identified Material Aspects & Boundaries

G4-17 About RCF – Page 7 Fully Reported

G4-18 About the report – Page 2 Fully Reported

G4-19 Stakeholder engagement & Materiality Assessment – Page 23 Fully Reported

G4-20 Stakeholder engagement & Materiality Assessment – Page 24 Fully Reported

G4-21 Stakeholder engagement & Materiality Assessment – Page 24 Fully Reported

G4-22 About the report – Page 2 Fully Reported

G4-23 About the report – Page 2 Fully Reported

Section: Stakeholder Engagement

G4-24 Stakeholder engagement &Materiality Assessment – Page 20-22 Fully Reported

G4-25 Stakeholder engagement &Materiality Assessment – Page 19 Fully Reported

G4-26 Stakeholder engagement &Materiality Assessment – Page 19 Fully Reported

G4-27 Stakeholder engagement &Materiality Assessment – Page 20-22 Partially Reported

Section: Report Profile

G4-28 About the report – Page 2 Fully Reported

G4-29 About the report – Page 2 Fully Reported

G4-30 About the report – Page 2 Fully Reported

G4-31 About the report – Page 2 Fully Reported

G4-32 About the report – Page 2 Fully Reported

G4-33 About the report – Page 2 Fully Reported

63

General Standard Disclosures

General Standard Disclosures Chapter Mapping Status of Reporting

Section: Governance

G4-34 Corporate Governance and Risk Management – Page 13 Fully Reported

G4-35 Corporate Governance and Risk Management – Page 15 Fully Reported

G4-36 Corporate Governance and Risk Management – Page 14 Fully Reported

G4-37 Stakeholder Engagement & Materiality – Page 20-22 Fully Reported

G4-38 Corporate Governance and Risk Management – Page 13 Fully Reported

G4-39 Corporate Governance and Risk Management – Page 13 Fully Reported

G4-40 Corporate Governance and Risk Management – Page 13 Fully Reported

G4-41 Corporate Governance and Risk Management – Page 16 Fully Reported

G4-42 Corporate Governance and Risk Management – Page 14-17 Fully Reported

G4-43 Corporate Governance and Risk Management – Page 14 Fully Reported

G4-44 Corporate Governance and Risk Management – Page 15 Fully Reported

G4-45 Corporate Governance and Risk Management – Page 14-17 Fully Reported

G4-46 Corporate Governance and Risk Management – Page 14-17 Fully Reported

G4-47 Corporate Governance and Risk Management – Page 15 Fully Reported

G4-48 Corporate Governance and Risk Management – Page 16 Fully Reported

G4-49 Corporate Governance and Risk Management - Page 14 Fully Reported

G4-50 Corporate Governance and Risk Management – Page 17-18 Fully Reported

G4-51 Corporate Governance and Risk Management – Page 14-15; Annual Report Fully Reported

G4-52 Corporate Governance and Risk Management – Page 14-15 Fully Reported

G4-53 Corporate Governance and Risk Management – Page 14-15 Fully Reported

G4-54 Business Growth and Profitability – Page 25 Fully Reported

G4-55 Business Growth and Profitability – Page 25 Fully Reported

Section: Ethics & Integrity

G4-56 Corporate Governance and Risk Management – Page 5,15 Fully Reported

G4-57 Corporate Governance and Risk Management – Page 16-17 Fully Reported

G4-58 Corporate Governance and Risk Management – Page 16-17 Fully Reported

64

Specific Standard Disclosure

Aspects Indicators Chapter Mapping Status

Disclosure of Management

ApproachG4-DMA All chapters Fully Reported

Category: Economic

Economic Performance

G4-DMA Business Growth & Profitability

G4-EC1 Business Growth & Profitability – Page 25 Fully Reported

G4-EC2 Corporate Governance and Risk Management – Page 13 Partially Reported

G4-EC3 Business Growth & Profitability – Page 25 Fully Reported

G4-EC4 Business Growth & Profitability – Page 25 Fully Reported

Market Presence

G4-DMA Business Growth & Profitability

G4-EC5 Business Growth & Profitability – Page 26 Fully Reported

G4-EC6 Employee Management and Labour Relations – Page 45 Fully Reported

Indirect Economic Impacts

G4-DMA Community Welfare

G4-EC7 Community Welfare – Page 52-54 Fully Reported

G4-EC8 Community Welfare – Page 52 Fully Reported

Procurement PracticesG4-DMA Business Growth & Profitability

G4-EC9 Our Supply Chain – Page 58 Fully Reported

Category: Environmental

Materials

G4-DMA Material Management

G4-EN1 Material Management – Page 37 Fully Reported

G4-EN2 Waste Management – Page 34,36 Fully Reported

Energy

G4-DMA Energy Management

G4-EN3 Energy Management – Page 30 Fully Reported

G4-EN4 Energy Management – Page 29 Fully Reported

G4-EN5 Energy Management – Page 27 Fully Reported

G4-EN6 Energy Management – Page 28 Fully Reported

G4-EN7 Not applicable NA

Water

G4-DMA Water Management

G4-EN8 Water Management – Page 32 Fully Reported

G4-EN9 Water Management – Page 33 Fully Reported

G4-EN10 Water Management – Page 33 Fully Reported

Biodiversity

G4-DMA Biodiversity Management

G4-EN11 Biodiversity Management – Page 40 Fully Reported

G4-EN12 Biodiversity Management – Page 40

G4-EN13 Biodiversity Management – Page 40 NA

G4-EN14 Biodiversity Management – Page 40 NA

Emissions

G4-DMA Emission Management

G4-EN15 Emission Management – Page 30 Fully Reported

G4-EN16 Emission Management – Page 30 Fully Reported

G4-EN17 Emission Management – Page 30 Fully Reported

G4-EN18 Emission Management – Page 30 Fully Reported

G4-EN19 Emission Management – Page 30-31 Fully Reported

G4-EN20 Emission Management – Page 31 Fully Reported

G4-EN21 Emission Management – Page 31 Fully Reported

Effluents & Waste

G4-DMA Waste Management

G4-EN22 Waste Management – Page 36 Fully Reported

G4-EN23 Waste Management – Page 38 Fully Reported

G4-EN24 Waste Management – Page 38 Fully Reported

G4-EN25 Waste Management – Page 38 Fully Reported

G4-EN26 Water Management – Page 33 Fully Reported

65

Specific Standard Disclosure

Aspects Indicators Chapter Mapping Status

Disclosure of Management

ApproachG4-DMA All chapters Fully Reported

Category: Environmental

Products and ServicesG4-EN27 Material Management NA

G4-EN28 Material Management - Page 39 Fully Reported

ComplianceG4-DMA

Corporate Governance & Risk Management; Environmental Investment

G4-EN29 Environmental Investment – Page 39 Fully Reported

TransportG4-DMA Environmental Investment

G4-EN30 Environmental Investment – Page 39 Fully Reported

Environmental Investments

G4-DMA Environmental Investment

G4-EN31 Environmental Investment – Page 39 Fully Reported

Supplier Environmental

G4-DMA Business Growth & Profitability

G4-EN32 Our Supply Chain – Page 58 Partially Reported

G4-EN33 Our Supply Chain – Page 58 Fully Reported

Environmental Grievance

Mechanisms

G4-DMA Corporate Governance & Risk Management

G4-EN34 Corporate Governance & Risk Management – Page 17 Fully Reported

Category: Social

Sub-category: Labor Practices & Decent Work

Employment

G4-DMA Employee Management and Labour Relations

G4-LA1 Employee Management and Labour Relations – Page 45 Fully Reported

G4-LA2 Business Growth and Profitability – Page 25 Fully Reported

G4-LA3 Employee Management and Labour Relations – Page 44 Fully Reported

Labor/ Management Relations

G4-DMA Human Capital

G4-LA4 Employee Management and Labour Relations – Page 48 Fully Reported

Occupational Health & Safety

G4-LA5 Employee Management and Labour Relations – Page 48 Fully Reported

G4-LA6 Employee Management and Labour Relations – Page 50 Fully Reported

G4-LA7 Employee Management and Labour Relations – Page 50 Fully Reported

G4-LA8 Employee Management and Labour Relations – Page 48 Fully Reported

Training & Education

G4-DMA Employee Management and Labour Relations

G4-LA9 Employee Management and Labour Relations – Page 47 Fully Reported

G4-LA10 Employee Management and Labour Relations – Page 46 Fully Reported

G4-LA11 Employee Management andLabour Relations – Page 45 Fully Reported

DiversityG4-DMA Employee Management and Labour Relations

G4-LA12 Corporate governance and Risk Management – Page 12 Fully Reported

Equal Pay for Women & Men

G4-DMA Employee Management and Labour Relations

G4-LA13 Employee Management and Labour Relations – Page 44 Fully Reported

Supplier Assessment for Labor Practices

G4-DMA Employee Management and Labour Relations

G4-LA14 Our Supply Chain – Page 58 Partially Reported

G4-LA15 Our Supply Chain – Page 58 Fully Reported

Labor Practices Grievance

Mechanisms

G4-DMA Corporate Governance & Risk Management

G4-LA16 Corporate Governance & Risk Management – Page 17 Fully Reported

66

Specific Standard Disclosure

Aspects Indicators Chapter Mapping Status

Disclosure of Management

ApproachG4-DMA All chapters Fully Reported

Category: Social

Sub-category: Human Rights

Human Rights Investments

G4-DMA Employee Management and Labour Relations

G4-HR1 NA NA

G4-HR2 Employee Management and Labour Relations – Page 48 Fully Reported

Non-discriminationG4-DMA Employee Management and Labour Relations

G4-HR3 Employee Management and LabourRelations - Page 45 Fully Reported

Freedom of Association

G4-DMA Employee Management and Labour Relations

G4-HR4 Employee Management and Labour Relations – Page 48 Fully Reported

Child LaborG4-DMA Employee Management and Labour Relations

G4-HR5 Employee Management and Labour Relations – Page 48 Fully Reported

Forced or Compulsory Labor

G4-DMA Employee Management and Labour Relations

G4-HR6 Employee Management and Labour Relations – Page 48 Fully Reported

Security PracticesG4-DMA Employee Management and Labour Relations

G4-HR7 Employee Management and Labour Relations – Page 48 Fully Reported

Indigenous RightsG4-DMA Community Welfare

G4-HR8 Community Welfare – Page 57 Fully Reported

Human Rights Assessments

G4-DMA Employee Management and Labour Relations

G4-HR9 Employee Management and Labour Relations – Page 48 Fully Reported

Supplier Human Rights Assessments

G4-DMA Our Supply Chain

G4-HR10 Our Supply Chain – Page 58 Partially Reported

G4-HR11 Our Supply Chain – Page 58 Fully Reported

Human Rights Grievance

Mechanisms

G4-DMA Corporate Governance & Risk Management

G4-HR12 Corporate Governance & Risk Management – Page 17 Fully Reported

Category: Social

Sub-category: Society

Local Communities

G4-DMA Community Welfare

G4-SO1 Community Welfare – Page 52 Fully Reported

G4-SO2 Community Welfare – Page 57 Fully Reported

Anti-corruption

G4-DMA Corporate Governance & Risk Management

G4-SO3 Corporate Governance & Risk Management – Page 17 Fully Reported

G4-SO4 Employee Management and Labour Relations – Page 46 Fully Reported

G4-SO5 Corporate Governance & Risk Management – Page 15 Fully Reported

Public PolicyG4-DMA Business Growth & Profitability

G4-SO6 Business Growth & Profitability – Page 25 Fully Reported

Anti-competitive Behavior

G4-DMA Community Welfare

G4-SO7 Corporate Governance & Risk Management – Page 16 Fully Reported

ComplianceG4-DMA Corporate Governance & Risk Management

G4-SO8 Corporate Governance & Risk Management – Page 16 Fully Reported

67

Specific Standard Disclosure

Aspects Indicators Chapter Mapping Status

Disclosure of Management

ApproachG4-DMA All chapters Fully Reported

Category: Social

Sub-category: Society

Supplier Assessment for Impacts on Society

G4-DMA Our Supply Chain

G4-SO9 Our Supply Chain – Page 58 Partially Reported

G4-SO10 Our Supply Chain – Page 58 Fully Reported

Grievance Mechanisms for

Impacts on Society

G4-DMA Corporate Governance & Risk Management

G4-SO11 Corporate Governance & Risk Management – Page 17 Fully Reported

Category: Social

Sub-category: Product Responsibility

Customer Health & Safety

G4-DMAProduct Responsibility; Human Capital; Relationship with Customers

G4-PR1 Product Responsibility – Page 40 Fully Reported

G4-PR2 Product Responsibility – Page 40 Fully Reported

Product & Service Labeling

G4-DMA Relationship with Customers

G4-PR3 Relationship with Customers – Page 40 Fully Reported

G4-PR4 Product Responsibility – Page 40 Fully Reported

G4-PR5 Not reported

Marketing & Communications

G4-DMA Relationship with Customers

G4-PR6 Product Responsibility – Page 40 Fully Reported

G4-PR7 Product Responsibility – Page 40 Fully Reported

Product Compliance

G4-DMA Product Responsibility

G4-PR8 Product Responsibility – Not Material Fully Reported

G4-PR9 Product Responsibility – Page 40 Fully Reported

68

National Voluntary Guideline (NVG) Disclosure

NVG Mapping GRI Reference Chapter Name Page

No

Section A: General Information about the Company

1. Corporate Identity Number (CIN) of the Company

2. Name of the Company G4-3 About RCF 6

3. Registered Address G4-5 About RCF

4. Website About the Report

5. E-mail id About the Report

6. Financial Year Reported G4-28 About the Report 2

7. Sector(s) that the Company is engaged in (industrial activity code-wise) G4-6 About RCF 6

8. List three key products/services that the Company manufactures/provides (as in balance sheet)

G4-4 About RCF 6

9. Total number of locations where business activity is undertaken by the Company

G4-6 About RCF 6

i. Number of International Locations (Provide details of major 5) G4-6 About RCF 6

ii. Number of National Locations G4-6 About RCF 6

10. Markets served by the Company – Local/State/National/International G4-8 About RCF 6

Section B: Financial Details of the Company

1. Paid up Capital (`) G4-EC 1 About RCF 6

2. Total Turnover (`) G4-EC 1Business Growth &

Profitability25

3. Total profit after taxes (`) G4-EC 1Business Growth &

Profitability25

4. Total Spending on Corporate Social Responsibility (CSR) as percentage of profit after tax (%)

NA Community Welfare 54

5. List of activities in which expenditure in 4 above has been incurred:- NA Community Welfare 52-54

Section C: Other Details

1. Does the Company have any Subsidiary Company/ Companies? NA About RCF 7

2. Do the Subsidiary Company/Companies participate in the BR Initiatives of the parent company? If yes, then indicate the number of such subsidiary company(s)

NA About RCF 7

3. Do any other entity/entities (e.g. suppliers, distributors etc.) that the Company does business with, participate in the BR initiatives of the Company? If yes, then indicate the percentage of such entity/entities? [Less than 30%, 30-60%, More than 60%]

NA NA

Section D: BR Information

Details of Director/Directors responsible for BR G4-38Corporate Governance &

Risk Management13

Indicate the frequency with which the Board of Directors, Committee of the Board or CEO to assess the BR performance of the Company. Within 3 months, 3-6 months, Annually, More than 1 year

G4-38Corporate Governance &

Risk Management13

Does the Company publish a BR or a Sustainability Report ? What is the hyperlink for viewing this report? How frequently it is published?

G4-3 About the Report 2

Section E: Principle-wise Performance

Principle 1: Ethics, Transparency and Accountability

Does the policy relating to ethics, bribery and corruption cover only the company? G4-58Corporate Governance &

Risk Management16

Does it extend to the Group/Joint Ventures/ Suppliers/Contractors/NGOs /Others?

NACorporate Governance &

Risk Management16

How many stakeholder complaints have been received in the past financial year and what percentage was satisfactorily resolved by the management?

NACorporate Governance &

Risk Management17

69

NVG Mapping GRI Reference Chapter Name Page

No

Principle 2: Sustainable Products and Services

List up to 3 of your products or services whose design has incorporated social or environmental concerns, risks and/or opportunities.

G4-P2 Product Responsibility 40

Does the company have procedures in place for sustainable sourcing (including transportation)?

G4-P3 Our Supply Chain 58

Has the company taken any steps to procure goods and services from local & small producers, including communities surrounding their place of work?

G4-P3 Our Supply Chain 58

Does the company have a mechanism to recycle products and waste? If yes what is the percentage of recycling of products and waste (separately as <5%, 5-10%, >10%). Also, provide details thereof, in about 50 words or so.

G4-P4 NA

Principle 3: Employee Well Being

Total number of employees. G4-10Employee Management and Labour Relations

45

Total number of employees hired on temporary/contractual/casual basis. G4-10Employee Management and Labour Relations

45

Number of permanent women employees. G4-10Employee Management and Labour Relations

45

Number of permanent employees with disabilities G4-10 Nil

Do you have an employee association that is recognised by management? G4-11Employee Management and Labour Relations

48

What percentage of your permanent employees is members of this recognized employee association?

G4-11Employee Management and Labour Relations

48

Please indicate the Number of complaints relating to child labour, forced labour, involuntary labour, sexual harassment in the last financial year and pending, as on the end of the financial year.

NA Nil

What percentage of your under mentioned employees were given safety and skill up-gradation training in the last year?

G4-LA9Employee Management and Labour Relations

47

Principle 4: Valuing Marginalised Stakeholders

Has the company mapped its internal and external stakeholders? G4-24Stakeholder Engagement

and Materiality Assessment

19

Out of the above, has the company identified the disadvantaged, vulnerable &marginalised stakeholders?

NA Community Welfare 52-57

Are there any special initiatives taken by the company to engage with the disadvantaged, vulnerable and marginalized stakeholders.

G4-SO DMA

Community Welfare 52-57

Principle 5: Human Rights

Does the policy of the company on human rights cover only the company or extend to the Group/Joint Ventures/Suppliers/Contractors/NGOs/Others?

NAEmployee Management and Labour Relations

48

How many stakeholder complaints have been received in the past financial year and what percent was satisfactorily resolved by the management?

NACorporate Governance &

Risk Management17

Principle 6: Environment

Does the policy related to Principle 6 cover only the company or extends to the Group/Joint Ventures/Suppliers/Contractors/NGOs/others.

G4-33Corporate Governance &

Risk Management

Does the company have strategies/ initiatives to address global environmental issues such as climate change, global warming, etc?

G4- EN DMA

Emissions Management13-14

Does the company identify and assess potential environmental risks? G4-EC2Corporate Governance and Risk Management

13-14

Does the company have any project related to Clean Development Mechanism? NA Product Responsibility 40

Has the company undertaken any other initiatives on – clean technology, energy efficiency, renewable energy, etc. Y/N.

NA Energy Management28-29

Are the Emissions/Waste generated by the company within the permissible limits given by CPCB/SPCB for the financial year being reported?

G4-EN 15 Emission Management 30

Number of show cause/ legal notices received from CPCB/SPCB which are pending (i.e. not resolved to satisfaction) as on end of Financial Year.

NA Nil

70

NVG Mapping GRI Reference Chapter Name Page

No

Principle 7: Policy Advocacy

Is your company a member of any trade and chamber or association? If Yes, Name only those major ones that your business deals with:

NAStakeholder Engagement

and Materiality 22

Have you advocated/lobbied through above associations for the advancement or improvement of public good?

NA

Principle 8: Inclusive Growth

Does the company have specified programmes/initiatives/projects in pursuit of the policy related to Principle 8?

G4-SO1 Community Welfare 52-57

Are the programmes/projects undertaken through in-house team/own foundation/external NGO/government structures/any other organisation?

G4-SO2 Community Welfare 52-57

Have you done any impact assessment of your initiative? G4-SO1 Community Welfare 52-57

What is your company’s direct contribution to community development projects- Amount in ` and the details of the projects undertaken.

NA Community Welfare 52

Have you taken steps to ensure that this community development initiative is successfully adopted by the community?

NA Community Welfare 52-57

Principle 9: Customer Welfare

What percentage of customer complaints/consumer cases are pending as on the end of financial year.

NACorporate Governance &

Risk Management 17

Does the company display product information on the product label, over and above what is mandated as per local laws?

G4-PR3Relationship with

Customers 40

Is there any case filed by any stakeholder against the company regarding unfair trade practices, irresponsible advertising and/or anti-competitive behaviour during the last five years and pending as of end of financial year

G4-PR4Corporate Governance &

Risk Management 17

Did your company carry out any consumer survey/ consumer satisfaction trends? NA

Em

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ge

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Ve

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ur

es

Emergent Ventures India Pvt. Ltd., 11th Floor, Vatika Professional Point, Golf Course Ex. Road, Sector 66, Gurgaon, Haryana, India, 122001.

Phone: +91 124 4319500, Fax: +91 124 4319501, Email: contact@emergent-ventures.com, URL: www.emergent-ventures.com

INDEPENDENT ASSURANCE STATEMENT Rashtriya Chemicals and Fertilizers Limited (RCF) engaged Emergent Ventures India Pvt. Ltd. (EVI) to undertake an independent assurance of its Sustainability Report for the year 2015-16. Adherence to the principles laid out in AA1000AS (2008) and GRI G4 ‘In-accordance’- Comprehensive guidelines have been used as criteria to evaluate the report. The intended users of this assurance statement are the readers of RCF’s Sustainability Report 2015-16. The management of RCF is responsible for engagement with stakeholders, identification of material issues; and the collection and presentation of the information contained in the report. In performing the assurance activities, EVI’s responsibility is to the management of RCF only in accordance with the terms of reference agreed between them. EVI do not therefore accept or assume any responsibility for any other purpose or to any other person or organization. The assurance report should not be taken as a basis for interpreting the Company’s overall performance, except for the aspects mentioned in the scope below. SCOPE OF ASSURANCE EVI has been engaged to provide Type 2 Moderate level of assurance as per AA1000AS (2008) assurance standard for the report. The scope of the assurance includes the following:

1. Evaluate the adherence to the Foundation Principle of Inclusivity, the Principle of Materiality and the Principle of Responsiveness laid out in AA1000AS (2008).

2. Evaluate the adherence to the principles of accuracy, balance, clarity, comparability, reliability and timeliness laid out in the GRI G4 Guidelines.

3. Evaluate reliability of specified sustainability performance data for the reporting period from April 2015 to March 2016.

OUR APPROACH The assurance process has been conducted based on physical site visits, interaction with respective departments, review of processes & practices for identification and collation of relevant information, report content and performance data, which included a review of the stakeholder engagement and materiality determination process. The following key steps are undertaken during the assurance process:

1. Review of RCF’s Sustainability Report 2015-16: A review of the Sustainability report is conducted to check alignment of reported data reported against respective economic, environment & social indicators mentioned in GRI G4 ‘In accordance’- Comprehensive guidelines. In addition, mapping along the principles of AA1000AS (2008) is carried out.

2. Site Visits: Assurance team visited RCF’s facilities comprising of two manufacturing units (Trombay, Mumbai and Thal, Alibag, Dist. Raigad) and corporate head quarters (Mumbai) to evaluate the sources of data.

3. Data Verification: Assurance team verified the robustness of data management, information flow & controls and performed sample based review of mechanisms for implementing the company’s sustainability related policies and plans, as described in the report. The information, disclosed under different indicators in the report, is verified by checking and cross-checking with different sources of the information like internal SAP system, reports submitted to regulatory bodies, utility bills, inter departmental communications, purchase orders etc supported by on-site inspection.

LIMITATIONS AND EXCLUSIONS

1. Scope of assurance is limited to the boundary defined in the report and the period from 1st April 2015 to 31st March

2016. 2. Assurance is subject to no physical verification of items like inventory of material consumed, waste generated,

emissions and effluents etc. Assurance relied solely on the documentation maintained and provided by the company.

3. The scope of assurance does not cover the statements in the report that describe companies approach, strategy, aim, expectation, aspiration or beliefs or intentions.

Em

er

ge

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Emergent Ventures India Pvt. Ltd., 11th Floor, Vatika Professional Point, Golf Course Ex. Road, Sector 66, Gurgaon, Haryana, India, 122001.

Phone: +91 124 4319500, Fax: +91 124 4319501, Email: contact@emergent-ventures.com, URL: www.emergent-ventures.com

CONCLUSION RCF’s Sustainability Report 2015-16 provides an appropriate representation of the sustainable development initiatives undertaken by the company. RCF has built processes that allow them to identify the material aspects for the company, collect performance data for majority of its facilities and report the information in adherence to the principles of AA1000AS (2008) & GRI G4 guidelines. The observations on the adherence of the three principles under AA1000AS (2008) are as follows: Foundation Principle of Inclusivity: No material evidence is found to suggest that RCF has not applied the principle of inclusivity in engaging with its stakeholders. Different departments engage regularly with their relevant stakeholders through multiple engagement channels. Principle of Materiality: RCF has followed a structured process of materiality determination. It is found that no material aspect of sustainability performance has been excluded from the report. Principle of Responsiveness: RCF has applied the principle of responsiveness with respect to its stakeholders. No material evidence is found to suggest that responsiveness principle is not being applied in dealing with the stakeholders. GRI G4 Guidelines The report meets the requirement of reporting as specified by GRI G4 ‘In accordance’- Comprehensive guidelines.

OBSERVATIONS AND RECOMMENDATIONS

Without affecting the overall conclusions on the sustainability report, the following observations and recommendations are made:

The set of criteria and indicators used for identification and prioritization of stakeholders may be refined in future reports.

An exhaustive list of indicators has been provided in the Materiality Matrix. However, some material aspects being broader in nature are getting overlapped with others. Materiality matrix needs to be improved in future reports.

RCF recognises the increasing importance of supply chain in growth of business and has proactively initiated several steps to ensure the overall sustainability of its supply chain. However, RCF should enhance the disclosure level towards the outcome and effectiveness of these initiatives in the future reports.

Templates for data collection and questionnaires sent for stakeholder engagement exercise for materiality assessments should be easy-to-comprehend with clear terminologies. Trainings on the same should be provided before rolling them out.

Awareness level of onsite personnel towards GRI reporting requirements needs to be enhanced on information that needs to be reported in the SR.

For Emergent Ventures India Private Ltd.

Atul Sanghal Business Head – Sustainability & Climate Change Emergent Ventures India Private Ltd. Gurgaon, 25th August, 2016

RASHTRIYA CHEMICALS AND FERTILIZERS LIMITED(A GOVERNMENT OF INDIA UNDERTAKING)“PRIYADARSHINI”, Eastern Express Highway, Sion, Mumbai-400 022 | Website: www.rcfltd.comCIN: L24110MH1978GOI020185